In a statement released, the subsidiary of Arise Technologies Corporation said it was unable to secure the required funds for its manufacturing expansion and technology upgrade plans.
The company had reportedly been looking to upgrade its process technology to manufacture higher efficiency solar cells. These cells are said to be in demand from its key customers.
"The continued operation of Arise Germany, even with the adoption of a ‘short work' arrangement, is not considered to be feasible under the current conditions," it said in the statement.
As a next stage, it is expected that the German court will assign Arise Germany an insolvency manager. During this process, a number of different outcomes are likely, including a capital injection in the company, the selling off business assets to a third party, or an "orderly" shutdown of the operation and asset disposal.
Arises Canadian operations have not been affected, said the statement.
Dan Shea, president and CEO, commented, "While disappointing, this action was necessary. Under German law, management is required to take this action when it is clear that a firm cannot meet its short term financial obligations. We continue to work on refinancing the Company as a whole, and expect additional news will be forthcoming in the near future."
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