The company is a player in San Diego’s renewable energy industry and manufactures building-integrated solar products.
CleanTECH San Diego, a nonprofit that promotes the clean technology industry in the region, Vice President Holly Lepre said that Applied Solar’s financial woes are not indicative of the plight of other renewable energy companies.
“The move is not indicative of the momentum of the solar industry in San Diego,” Lepre said.
The Chapter 11 filing will allow Applied Solar to “reposition their basic business model” and become a profitable operation, Lepre said. “Basically they were selling a product that no one wanted to buy,” Lepre said, referring to the company’s Building Integrated Photovoltaic (BIPV) solar roofing tile and membrane products.
CleanTECH San Diego is among the company’s creditors in the court filings.
However, Lepre said, that Applied Solar does not have any outstanding debts with the organization.
Commercial Facilities Inc. (CFI) Vice President Mike Paeske said that CFI has filed in small claims court to recoup the amount Applied Solar never paid after vacating office space located at 514 Via De La Valle.
Applied Solar had announced in May 2009 that it would file for bankruptcy as part of its loan agreement with the Quercus Trust. The company recently borrowed another $215,000 in addition to the $698,000 borrowed in May 2009.
