Unintended Consequences -- Evergreen Solar Declares Bankruptcy -- Not a Bakken Story

When oil went into free fall a couple of weeks ago, falling from $100 to just below $80, I opined that this was the end for wind and solar projects. Without huge subsidies, grants, or government mandates, wind and solar cannot compete with oil even when oil is priced at $100/bbl, much less when oil hits $80.

Today Evergreen Solar announces it has filed for bankruptcy to maximize stakeholder value. Okay. I cannot make this stuff up. 

“Chapter 11 will provide Evergreen Solar with the ability to maximize returns for our stakeholders through the proposed sale process,” Evergreen CEO Michael El-Hillow said in a statement. “Importantly, we expect to continue our technology development without interruption during Chapter 11 and the sale process.”

This was the company that received millions in government support, promised 800 new jobs, and moved most of those jobs to China, which, by the way, was a New York Times story.

Obviously the company filing for bankruptcy was not driven by the most recent drop in oil prices, but I find the timing of the announcement interesting. Obviously the board sat around the table, and saw like the rest of us, that plummeting oil prices were just making their job venture go from bad to worse. It certainly looks like the fall in oil prices was the catalyst.