Photovoltaic news and pv jobs

SolarWorld debt negotiations continue

SolarWorld AG is currently under massive debt pressure. To ease the situation, the company is in discussions with banks and bondholders regarding solutions. None have, however, been thus far found.

SolarWorld is seeking to refinance its around €1 billion debts.

SolarWorld AG

The Germany-based photovoltaic manufacturer announced in late January that both "serious" debt adjustments and business restructuring are necessary. However, according to Reuters, an agreement with the banks and bondholders has still not been reached.

"The bank talks are continuing," said SolarWorld CEO, Frank Asbeck. He also did not rule out postponing the company’s annual financial press conference, scheduled to be held on March 21.

SolarWorld’s debts currently amount to around €1 billion, with two bonds worth approximately €550 million due in 2016 and 2017, respectively. Meanwhile, the company’s liquidity in January, according to the report, was €220 million to €230 million.

Equity analyst Stefan Freudenreich told the news agency that SolarWorld has to reduce its debt by a third, as the interest burden is currently too high. Although this means a severe loss for the creditors, the losses would be less than if the company went bankrupt.

In addition to debt adjustments, a restructuring of the business is also required. With factories in Germany, SolarWorld is not internationally competitive, stated Freudenreich further.

Translated by Becky Beetz.