Sovello submits insolvency application14. May 2012 | Industry & Suppliers, Markets & Trends | By: Sandra Enkhardt
Following speculation at the weekend that Sovello GmbH would file for insolvency, the company has now submitted an application to open self-administration insolvency proceedings at the Dessau district court in Germany, due to a lack of funds.
Bernd Depping from German law firm, dnp Depping has been appointed provisional administrator. "We have checked out alternative scenarios to restore the solvency of the company. Even if debt is low: we predict the company in the difficult market environment, which is characterized by funding cuts, overcapacity and falling prices, can be permanently restored through the instruments of the bankruptcy act," stated Reiner Beutel, CEO of Sovello.
The photovoltaic manufacturer has placed the redevelopment process in the hands of law firm, Taylor Wessing, led by Matthias Kampshoff. The provisional administrator also wants to work together with the Sovello leadership "in order to preserve all options for redevelopment." "The more smoothly the business can continue in the short term, the more chances we have to rehabilitee the company in the medium and long terms," said Depping.
He now wants to take care of the insolvency fund for the 1,250 employees, which should be paid wages until July 1.
Saturday’s edition of Germany’s Mitteldeutsche Zeitung announced that Sovello had had to cut its production back by a third and was considering introducing shorter working hours for the employees located in Thalheim.
Translated by Becky Stuart.
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