Evergreen Bites the Dust
08-15-2011
Evergreen just a few years ago a promising light on the solar industry filed for reorganization today, but according to press accounts, there is no chance that it will reemerge from bankruptcy. Evergreen is basically getting breathing room to sell its remaining assets. For those who invested in this green company, well, there is this from Morningstar: "Based upon the estimated value of the Company's assets, the assets are expected to be insufficient to satisfy all its obligations to its creditors. Accordingly, it is expected that no distributions will be made to holders of common stock and the common stock will be extinguished upon consummation of the Chapter 11 plan."
Who is to blame for Evergreen's demise? According to Bloomberg, Evergreen "blamed the bankruptcy on increased competition from government-subsidized solar-panel makers in China and the failure of the U.S. to adopt clean-energy policies."
Evergreen leaves in its wake a gaggle of disgruntled investors and creditors, and a whole lot of political heartburn. According to the Boston Herald, the Massachusetts Republican Party "called the Patrick administration's $58 million financial aid package, which supported Evergreen's $450 million factory, a ‘waste' of money." And there will be many further recriminations, but the major issue will be discussed for many years to come: what killed Evergreeen?
