An innovative green-tech power company has a factory that can’t cover its costs and despite tens of millions in federal government credit, has filed for Chapter 11 bankruptcy protection.
This may sound like a familiar story, but Beacon Power, the company in question, insists that it’s not another Solyndra. For one thing, its government loan is substantially lower, and for another, it has a decent chance of emerging from bankruptcy protection and carrying on, unlike Solyndra, whose assets are being auctioned off. Beacon Power makes flywheel technology that balances power on the grid, but its main source of revenue is a government-funded storage facility which continues to operate. Not only that, but a recent regulatory change is likely to benefit the company’s technology, according to CEO Bill Capp.
Still, Chapter 11 is never a good sign. Neither is being de-listed from an exchange, and the Nasdaq served a delisting notice to Beacon last month because of its low stock price.
If Beacon Power does bite the dust, it likely won’t be the last federally-funded green power company to do so. Ener1, which builds lithium ion batteries and received a $119 million federal loan, was delisted from the Nasdaq last week.
Read more at CNET.