According to Reuters on November 25, PosiGen, an American solar energy company, filed for bankruptcy in Texas . The company said the Trump administration's cuts to solar tax credits and subsidies had starved it of funds and triggered disputes with creditors. PosiGen suffered a funding crisis this summer, according to
court documents. However, as the U.S. solar market continued to shrink , creditors were reluctant to invest more money, so the company was forced to stop most of its business .
At the same time, PosiGen has acknowledged problems with its operations over the past year. The company repeatedly pledged some of its assets when seeking short-term financing; in addition, it violated debt contracts by mixing funds from different sources of income.
It is reported that PosiGen's financing debt amounted to $ 206 million, and Brookfield Asset Managemen, the main lender, had previously sought to take over and dispose of the company's assets. It also plans to transfer most of PosiGen's users to new solar service providers.
PosiGen objected to Brookfield's proposal, saying that a court-supervised bankruptcy would buy it time to complete solar projects under construction that would bring in future revenue .
According to the company's court filing, the bankruptcy process also avoids the "slow dismemberment" of the company and results in better outcomes for stakeholders, including customers, employees and investors who have purchased the PosiGen Solar Investment Tax Credit (ITC).
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