Close on the heels of its German subsidiaries filing for insolvency, Meyer Burger and its subsidiaries and debtor affiliates in the U.S. have filed for Chapter 11 protection in the Bankruptcy Court for the District of Delaware.

The company has filed for bankruptcy for its debtor affiliates Meyer Burger (Arizona), Meyer Burger (Americas), Meyer Burger (America) Lease, and solar module manufacturer Goodyear.

The company said it filed for bankruptcy due to liquidity challenges resulting from cost overruns and delays associated with the development of its Goodyear module facility.

It also attributed the bankruptcy to the cancellation of the solar cell manufacturing plant in Colorado.

Recently, Meyer Burger announced the shutdown of its Arizona facility and initiated insolvency proceedings for its German subsidiaries, Meyer Burger (Industries) and Meyer Burger (Germany). It had also declared insolvency proceedings for its affiliates in Switzerland and Germany.

Meyer Burger said that it was unable to raise sufficient equity or debt capital to complete the projects. Its failure to raise funds led to the collapse of a key supply agreement with D.E. Shaw Renewable Investments and the imposition of liens on its inventory.

The company and its affiliates have entered into bankruptcy with an estimated $435,000 in cash on hand and intend to pursue an expedited Section 363 sale process. The expedited section 363 sale process will be supported by a $10 million debtor-in-possession facility from prepetition lenders.

Meyer Burger has reported assets between $100 million and $500 million and liabilities between $500 million and $1 billion. Its top 20 largest unsecured claims cumulatively amount to $76.56 million.

An ad hoc group of bondholders aided the company with an interim financing, but it was unsuccessful in keeping the company afloat.

Failing to raise adequate funds, the company was forced to lay off over 400 employees and was subsequently exposed to litigation under the Worker Adjustment and Retraining Notification Act.