SolarWorld debt negotiations continue

Share

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.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.