Infinia files Chapter 11 bankruptcy
Solar energy technology company Infinia has filed for Chapter 11 bankruptcy to US Bankruptcy Court of Utah after failing to obtain additional financing.
The filing will provide some relief to the company and help it to preserve the value of the business.
In early 2013, the company installed a 1.5MW project, but it could not complete operations fast enough to start generating positive cash flow. Therefore, Atlas Global Holdings, a lead lender of Infinia, has made an offer to purchase Infinia's assets at a price of $6m.
Infinia president and CEO Mike Ward said after carefully considering the available alternatives, the company's board of directors determined that the Chapter 11 filing was in the best interest of the company and its stakeholders.
"This process enables Infinia to continue limited business operations while we pursue a speedy auction of the company," Ward added.
"We are incredibly proud of our employees, and we would like to thank our investors, development partners, customers and suppliers, for the years of support that allowed us to bring our innovative technology to market.
"We expect that a new buyer will emerge and assist us as we continue to bring our very efficient free-piston Stirling engine technology to market."