Posigen Says Mass Layoffs Were Unforeseeable, Claims Worthless

Residential solar company Posigen PBC urged a Texas bankruptcy judge to value claims asserted by 470 terminated employees at zero dollars, saying it had no way of anticipating the need for sudden layoffs in August.

Facing a liquidity crisis last year brought on by growing overhead costs and shrinking federal support for solar energy projects, Posigen had no choice but to fire employees without advance notice when primary lender Brookfield Asset Management acted on a $600 million loan default and froze certain cash accounts, the company told the US Bankruptcy Court for the Southern District of Texas.

Posigen hoped to ...