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Bloomberg: Abound Solar Files for Bankruptcy Despite $400 Million Loan Guarantee

June 29, 2012, 07:00 AM
Filed Under: Energy

Bloomberg reported that Abound Solar Inc., a Loveland, Colorado-based U.S. solar manufacturer that was awarded a $400 million U.S. loan guarantee, will suspend operations and file for bankruptcy because its panels were too expensive to compete.
According to the report, Abound borrowed about $70 million against the guarantee. Abound stopped production in February to focus on reducing costs after a global oversupply and increasing competition from China drove down the price of solar panels by half last year.

This latest failure of a solar manufacturer follows that of Solyndra LLC, which closed operations in August 2011 after receiving a $535 million loan guarantee from the U.S. Energy Department program.

The company stated, “Aggressive pricing actions from Chinese solar-panel companies have made it very difficult for an early stage startup company like Abound to scale in current market conditions,” according to the Bloomberg report.

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