Solar Trust of America LLC filed for Chapter 11 bankruptcy in Delaware court on Monday, putting what would be the world’s largest solar power project on hold.
Solar Trust of America was forced to file for debt protection after its parent company began bankruptcy proceedings in Germany, and they failed to meet a deadline for a Department of Energy loan guarantee of about $2.1 billion, which they did not receive.
Solar Trust of America was developing a 1000 megawatt solar energy project near Blythe, California, but that project is on hold unless the company can find a buyer. The solar energy plant in Blythe is listed as one of Solar Trust’s primary assets.
In their bankruptcy filing, Solar Trust listed their assets at $10 million with their debts ranging between $50 million and $100 million. Several affiliate companies also filed for bankruptcy.
Edward Kleinschmidt, Solar Trust’s chief operating officer said the company has already missed rent payments on the Blythe property and doesn’t have to money to make future payments.
The past year has seen a number of solar companies seek out the assistance of bankruptcy attorneys. Most notably, California-based Solyndra, producer of solar panels, which did receive a federal loan filed for debt protection.
Bankruptcy lawyers can help a troubled business return to solvency after they restructure their business and work on reducing debt. Each company has different needs and a bankruptcy attorney will determine which bankruptcy filing will be most beneficial to the business.