Israel’s Blue Canyon Technology Co., which is the world’s biggest producer of solar cells, is facing a crisis that could see its fortunes spiral out of control.
The Israeli company is on track to fall to the bottom of a key index, the Dow Jones Industrial Average, as investors fret over the collapse of the company, which has seen its stock plummet in recent weeks amid a surge in domestic demand for the technology.
The company, whose main operations are in Israel and China, has been suffering from a series of technological problems, including the death of a third of its workforce and a prolonged supply of power in Israel’s southern deserts, which can be expensive to install and maintain.
The latest setback comes as the Israeli government is seeking to sell off the company in an effort to strengthen its grip on the Israeli market.
Blue Canyon is the second Israeli company to go bankrupt in recent months, following a $200m deal to buy Solar City, a solar panel supplier that is now in the hands of rival SolarWorld.
The Israeli government has sought to sell Blue Canyon for at least $400m, according to a document seen by Reuters.
The government said in a statement on Tuesday that it has “credible information” that the company’s business is suffering from “a series of technical and financial problems”.
Blue Canyon’s financial woes were highlighted on Tuesday when the company filed for bankruptcy protection.
It said that it had suffered from “an inability to meet the needs of its customers and a lack of timely production and technical updates”.
“Our customers have been deeply disappointed and have asked for the company to come back into service, and we will do our best to meet their needs,” the statement said.
According to the Israeli authorities, the company was due to meet with investors at the end of this month to finalise the terms of its restructuring, and that it would be “open to any investor with an interest in Blue Canyon”, but that the process had been delayed.
Blue Canyon is Israel’s third largest solar panel producer after Panasonic and Suniva.
In addition to Blue Canyon, the Israeli companies SolarCity and SolarWorld have been suffering setbacks in recent years.
In May, SolarCity announced that it was facing a financial collapse.
In December, the solar giant announced that its solar business would go into administration.
“We have suffered from technical and operational problems for several years,” said the company at the time.
“We have experienced a decrease in customer demand for solar panels in recent times, due to the increasing popularity of electric vehicles.”
The company’s problems began in 2012 when the Israeli-Palestinian conflict flared up.
Israel and Hamas had a longstanding rivalry over the construction of a pipeline that would have brought electricity from the Palestinian territories to the country.
As a result, Palestinians began using their electricity in the desert to power the homes and businesses of the Israeli settlers in the West Bank.
Israel’s security forces were deployed to protect the pipeline, and the company blamed the conflict for the problems it had encountered.
During the dispute, the Palestinian Authority, the local government of the Palestinian Territories, and Blue Canyon jointly negotiated a deal with the Israeli state that would see a pipeline built from Israel’s eastern West Bank to Gaza.
As a result of the pipeline construction, the Palestinians were given the right to a 50 percent share in the electricity produced from the desert, and Israel’s electricity grid was turned into a power grid for Gaza, which had to import the electricity from Egypt.
The Palestinian Authority was also granted a 30 percent stake in the Israeli electricity network, and a 30-percent stake in Blue Mountain, a joint venture between the two companies.
While the agreement allowed for a certain degree of separation between the Palestinian electricity sector and the Israeli grid, it also allowed for some Palestinian electricity to go directly to Israeli homes, which were then connected to the grid.
The Palestinians were also given the option of selling off their electricity assets in order to pay for the pipeline.
After the construction phase of the project was completed, the Israelis announced that they would transfer the remaining 40 percent of the energy produced from Palestinian territories, which amounted to around 4,000 megawatts, to Israeli consumers.
Although the Israeli economy was badly hit by the crisis, the pipeline was not completed, and as a result Palestinian farmers were not given access to the electricity.
The project was later completed, but its impact on the Palestinians’ lives and livelihoods was not.
Israeli Prime Minister Benjamin Netanyahu said in his recent speech to the Knesset that the project would be the “biggest single contribution to Israel’s energy security”.
Israel’s electricity network is in disarray.
The pipelines, which are used to deliver electricity from Israel to Gaza, are failing to meet demand.
The Israelis have been trying to sell the company off in order for the Israeli and Palestinian governments to reach an agreement. Israel is