As the solar energy industry continue to revise inventory and the price is decreasing, the U.S. solar-cell factory Evergreen Solar (ESLR) has announced to applicated bankruptcy protection from the Delaware bankruptcy court according to the Chapter 11 of U.S. bankruptcy.
It is understood the reason that ESLR filed for bankruptcy protection is mainly due to credit problems the EU has not resolved yet, besides,the United States and Japan have slow economic recovery, which makes the governments cut solar subsidies gradually. In such the situation, market demand for solar cells also has a the natural decline. In addition, from the second half of last year to mid of this year, the global solar cell factories are to full capacity for mass production. Therefore,that ESLR applicated for bankruptcy protection underscores the solar cell market seriousness of excess inventory and falling prices.
Market experts believe that solar-cell factories face to cash flow shortage and decline in value of inventory,not only the current excess inventory and falling prices and other issues. Experts say that although the polysilicon materials has decline in prices, but the declines are not as big of solar cells, thus, if the industry failed to control a good accounts payable and accounts receivable, net cash flows will occur out of problem.In addition, as the market demand slowed down in the Q2 for solar cells, the price was down also,it is estimated to be likely to have more substantial losses. Experts believe that, although the ESLR's bankruptcy has little effect in Taiwan's solar power plant, but it highlights the current solar market, falling prices and excess inventories,Taiwan solar power plant must learn a lesson from this.