A solar company in another state recently filed for bankruptcy. The main reason for Suniva’s Chapter 11 bankruptcy filing is tariff-related issues in the solar industry, which have caused the company’s financial hardship. A company in Massachusetts that is facing financial struggles due to debt issues may find much-needed relief through the Chapter 11 bankruptcy process.
According to officials, solar cells manufactured in many other countries are not subject to tariffs in the United States. These are the solar cells, which are placed in solar panels or modules, that are arriving in large numbers in the U.S. market. As a result, they are causing prices to plummet.
The tariff-related financial issues that Suniva has been battling caused the company to lay off more than 130 workers at its solar panel factory and headquarters back in March. The business additionally closed down its panel assembly plant in a different state. Suniva is one of the biggest manufacturers of solar products in the United States and, prior to its recent financial troubles, had been experiencing rapid growth since 2007. At the time, the company received millions of dollars in tax credits to help it to create new job positions.
Sometimes, changes in the market or other factors prevent a company from being able to overcome its liabilities. However, a Chapter 11 bankruptcy filing can give a company a fresh financial start. Through this type of bankruptcy filing, business owners in Massachusetts can reorganize their debts and thus increase their chances of leading successful businesses going forward.
Source:Â ajc.com, “Suniva, Georgia-based maker of solar panels, files for Chapter 11”, Todd Duncan, April 19, 2017