Solar Millennium files for insolvency21. December 2011 | Global PV markets, Industry & Suppliers, Markets & Trends | By: Becky Stuart
Solar Millennium AG is the latest victim of the weak solar market conditions. Just this afternoon, it announced that it has filed for the opening of insolvency proceedings.
The German company cites the postponement of its U.S. photovoltaic pipeline discussions with solarhybrid AG as a primary reason for the decision. Failed negotiations with investors over its solar thermal Ibersol project, of which it sold a 50 percent stake to Ferrostaal to last August, also played a detrimental role.
In a statement released, it explained, "Already since September, the company has been in a very advanced state of negotiations on the sale of its U.S. pipeline. Agreement exists to a large extent on this transaction; substantial contracts have already been signed. However, certain conditions for the effectiveness of the agreements have not yet been met. A binding confirmation on the amount and time of the cash flows could not be obtained until last."
In the announcement earlier today, both parties said they were still looking to carry out the transaction as planned, "if possible".
The company added, "In addition, intensive negotiations with investors on the entrance into the project Ibersol could not be finalised. Both transactions would have generated funds beyond the current need for liquidity which would have laid the foundation for a further development of the company."
Solar Millennium has had a controversial year, after settlement negotiations between former CEO Utz Claassen had to be restarted and the announcement that Hannes Kuhn had resigned in September, due to a "media witch hunt" brought on by the Claassen dispute.
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