Germany's SunConcept announces insolvency08. February 2012 | Industry & Suppliers, Markets & Trends | By: Becky Stuart
SunConcept Group, which designs, installs and operates photovoltaic systems, has filed for insolvency with Germany’s Limburg District Court, after seven of its subsidiaries went bankrupt. A total of 100 employees have been affected.
The group’s "significant" loss of revenues have been attributed to increased competition from the Far East and declining feed-in tariffs. In a statement released, it added that unfortunately a restructuring plan could not be implemented in time to avoid it having to file for insolvency, despite changes being made to the management’s cost structures.
Until recently, it continues, intensive rescue talks were held with various investors, however, they could not be brought to a conclusion.
Lawyer Jens Lieser from Koblenzer has been appointed as provisional liquidator, and will continue these discussions. He is expected to attend a meeting to inform SunConcept about the insolvency and the next steps forward.
Lieser commented, "I am quite confident that ... the group of companies can be reorganized and made fit for the future, because the investment by communities and households in renewable energy makes sense, despite declining feed-in tariffs."
In the coming weeks, Lieser and his team will look into the SunConcept Group and work on a continuation plan. The overall goal is to maintain the profitability of the solar provider and as many jobs as possible.
The group went on to say that despite the news, its business divisions would continue to operate as normal, "without any limitations".
Furthermore, while 100 employees will be affected, their salaries are protected by Germany’s Federal Employment Agency through an insolvency fund, from January 2012 until March 2012.
The SunConcept Group has offices in Italy, the U.K. and South Africa.
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