RadioBDC Logo
Every Other Freckle | Alt-J Listen Live
THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

Bankrupt energy firm Beacon Power to sell assets

By Randall Chase
AP Business Writer / November 18, 2011

E-mail this article

Invalid E-mail address
Invalid E-mail address

Sending your article

Your article has been sent.

Text size +

WILMINGTON, Del.—A Massachusetts company that received a $39 million Department of Energy loan before declaring bankruptcy has decided to sell its assets rather than reorganize.

An attorney for Beacon Power told a Delaware judge Friday that the company hopes to complete the sale by late January.

Attorneys also told the judge that they had resolved the DOE's objections to Beacon's request to use cash collateral on the DOE loan to fund operations during the bankruptcy.

Beacon, based in Tyngsboro, Mass., makes flywheel energy storage systems that keep power frequency steady on electrical grids.

The company has blamed its bankruptcy filing on the political fallout from the failure of Solyndra Inc., a California solar energy company that sought bankruptcy protection in Delaware after receiving a half-billion-dollar loan from the Obama administration.