Centrotherm looks forward to terminating insolvency proceedings29. January 2013 | Top News, Industry & Suppliers, Markets & Trends | By: Becky Beetz
Centrotherm photovoltaics AG’s insolvency plan has been approved, meaning the German company can now look forward to terminating its insolvency proceedings, pending final confirmation.
In what will be seen as a positive start to the year for centrotherm, the company’s shareholders and creditors approved the insolvency plan at a meeting organized today, January 29, by the Ulm District Court.
While court confirmation and the satisfaction of final formal conditions still need to be achieved, centrotherm is confident its insolvency proceedings can be rescinded. As such, it is expected that all of the remaining 1,000 jobs can be maintained.
Under the reorganization plan, the photovoltaics company intends to continue on as a stock listed corporation. It is also looking to boost capital share via the conversion of unsecured creditors' receivables into the company's shares.
As such, centrotherm’s creditors are expected to relinquish 70% of their receivables deemed unconditional and without restriction to an independent administration company, which will become a shareholder.
Overall, it is expected that share capital will be reduced by €16.93 million to €4.23 million via a capital write down, and then subsequently increased via a debt to equity swap to €21.16 million. The administration company will hold 80% of centrotherm’s shares for its creditors, which it will then sell on, while remaining 20% will stay with the shareholders.
If the plan achieves final approval, expected at the end of this month, centrotherm’s previously announced management changes will also become effective. Efforts will further be focused on the company’s core business of production technology for thermal surface processes in the photovoltaic industry.
"If we implement the plan as envisaged, it will comprise an equally beneficial result for shareholders, employees and creditors. For shareholders, millions of euros' worth of value, the stock market listing and the value enhancement potentials of their shares remain. Creditors stand a good chance of realizing 100 percent of their receivables, or even more," commented Tobias Hoefer, Management Board member responsible for the insolvency plan and the company's own administration.
He added, "Last, but not least, all of the currently approximately 1,000 jobs within the centrotherm Group can also be maintained."
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