Scheuten Solar next company to file for insolvency01. March 2012 | Industry & Suppliers, Markets & Trends | By: Becky Stuart
Scheuten Solar filed for insolvency yesterday. The move was attributed to the "dramatic" oversupply of photovoltaic modules, which led to price declines, tighter margins and, for Scheuten, an inability to pay its creditors.
On February 29, Germany's District Court of Essen appointed Steffen Reusch from law firm, dnp Depping, provisional administrator for Scheuten Solar Production Facilities GmbH, Scheuten Solar Cells GmbH and Scheuten Solar Technology GmbH. Meanwhile, Bernd Depping also from dnp Depping has been appointed provisional administrator of Scheuten Solar Holding Germany GmbH.
By the end of May 2012, at the latest, the provisional liquidators, together with Scheuten’s management, aim to have clarified the competitiveness and restructuring options for the photovoltaic group, which has been operating for over a decade in the solar industry.
"We are taking care to present the preliminary insolvency payments for the 233 employees in Germany, hold initial discussions with customers and suppliers in order to stabilize the business," commented Reusch. "Then we will analyze the team, to see whether and how we can restructure the company with the tools of the Bankruptcy Act."
Depping added, "We must first explore the medium and long term prospects of the companies in a market that is known to be characterized by significant overcapacity in Europe and striking declines in prices. We will coordinate our efforts with the Dutch parent company."
In a statement published on Scheuten Solar’s website, the company explained, "Dramatic oversupply of standard PV modules in the European market during the last 12 to 18 months has led to a price fall of more than 50 percent. As a result, margins have been under tremendous pressure for a prolonged period.
"Due to this market situation, and the large negative financial impact of several onerous supply contracts in its portfolio, Scheuten Solar’s financial situation has weakened despite continuous cost reduction measures. From the middle of last year, the company has made serious efforts to attract investments from another PV company to live through this very difficult period in the industry. Unfortunately in the end, these negotiations did not succeed.
"Because of all these unfortunate developments, Scheuten Solar is now entering into a situation where it can no longer serve its creditors. As a consequence, Scheuten Solar filed today for suspension of payment for certain solar entities.
"The activities of Scheuten Glass are completely separate and will therefore continue unaffected."
Scheuten Solar is part of the international Scheuten Group, which employees over 2,000 people.
Choose between a digital and print subscription from pv magazine publisher Solarpraxis AG’s online shop!
Solar trade war: U.S. imposes preliminary anti-dumping tariffs of 26-165% on solar PV from China, Taiwan5704 views
- 3636 views
- 2962 views
- 2053 views
- 1993 views
Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!