Oregon clean energy company files for bankruptcy, claiming more than $300 million in debt

Tualatin battery manufacturer Powin filed for Chapter 11 bankruptcy Tuesday, reporting more than $300 million in debt.

Powin warned last month that it was preparing to lay off nearly 250 employees, including 100 at its Tualatin headquarters and office in Portland’s Pearl District. In Tuesday’s bankruptcy filing, Powin said those layoffs took place June 6.

Others quit, Powin said, “because of the uncertain situation.” The privately held company said it has just 85 employees left, down from 500 at the start of the year.

Powin said Tuesday it intends to continue operating in its diminished capacity. It promoted Brian Kane, formerly Powin’s chief projects officer, to take over as CEO.

“This is a pivotal moment for Powin,” Kane said in a written statement. “Forming this organization around our services business through this critical transition allows us to preserve the value we’ve built (and) focus on delivering reliable performance to our customers and position the organization for long-term viability and success.”

Powin makes large-capacity batteries that store energy generated by solar plants and wind farms. That enables the facilities to store electricity for times it isn’t sunny or windy enough to generate power.

The company hasn’t explained exactly what triggered its financial crisis. As recently as October, it had arranged to borrow up to $200 million from investment funds associated with the private equity firm KKR.

But clean energy companies are under intense financial pressure as the Trump administration seeks to scale back incentives for solar and wind power and increase government support for fossil fuels.

Additionally, Powin has historically relied on battery components from China. The new administration’s tariffs and trade barriers have made Chinese products more expensive or inaccessible, undermining some domestic manufacturers who relied on those components.

Going forward, Powin said it plans on making money by servicing its products.

Tuesday’s bankruptcy filing states that KKR notified Powin in March that it was in default on its loan. It said Powin owes at least $25.6 million.

About The Author