Konarka Files for Voluntary Chapter 7 Bankruptcy; Ceases Operations
June 5, 2012

by Penny Stacey, pstacey@glass.com

Konarka Technologies Inc. in Lowell, Mass., has filed for voluntary Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of Massachusetts with liabilities totaling between $10 million and $50 million. According to information from Konarka, with the chapter 7 proceedings, the company has ceased operations and the company's assets will be liquidated "for the benefit of creditors."

"Konarka has been unable to obtain additional financing, and given its current financial condition, it is unable to continue operations," says Howard Berke, its chairman, president and CEO. "This is a tragedy for Konarka's shareholders and employees and for the development of alternative energy in the United States."

According to court documents, the company has more than 200 creditors. Among these are several industry-related companies, including St. Paul, Minn.-based 3M Company; Philadelphia-based Ace Glass Inc.; Adchem in Riverhead, N.Y.; France-based Bostik S.A.; LTI Smart Glass in Pittsfield, Mass.; Riverside Glass Co. in Lowell, Mass.; and Sherwin-Williams, also in Lowell. Specific claim amounts were not included with the filing.

A meeting of creditors is scheduled for July 2 in Worcester, Mass., and claims are due by October 1.

Daivd M. Nickless with Nickless, Phillips and O'Connor in Fitchburg, Mass., has been appointed trustee, and Richard King with the Office of U.S. Trustee in Worcester is serving as assistant U.S. trustee.

Stay tuned to www.USGNN.com™ for more information as it becomes available.

This story is an original story by USGlass magazine/USGNN™. Subscribe to USGlass magazine.
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