Applied Solar, Inc. (APSO.OB) announced Friday it will seek Chapter 11
bankruptcy protection as part of an agreement with its biggest
investor, The Quercus Trust.
The San Diego-based company borrowed $698,000 from Quercus
under a short-term loan that matures on June 15, 2009. As a condition
to the loan, the company is required to file for reorganization within
thirty days.
The company is currently engaged in discussions with potential
financing sources, including The Quercus Trust, concerning the
extension of debtor-in-possession or "DIP" financing to support the
Company’s operations during its reorganization.
Applied Solar is a maker of buidling-integrated solar products.
In December 2008, Applied Solar, formerly known as Open Energy, reached an exclusive licensing deal with Chinese solar company Suntech Power Holdings Co Ltd (STP.N).
David Field, President and CEO of the company, said "The current
state of the financial markets combined with a difficult and
complicated capital structure have made it extremely challenging for
the company to secure needed financing. We are hopeful that a
restructuring will enable the company to emerge stronger and in a
better position to capitalize on the anticipated future growth in the
solar industry."
The company said at the present time, no binding commitment to
provide DIP financing by The Quercus Trust or any other party has been
received and there can be no guarantee that the company will obtain
such financing.
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