The Dresden District Court has opened up the process for restructuring under the protection of insolvency laws, Germany’s version of Chapter 11. Solarwatt has now published the first details on the proposed restructuring. The plan will be examined by a judge and thereafter, lawyer Rainer Bahr who is the trustee, will provide the details and the creditors will vote on it.
The court has set September 11 as the date for the discussion and voting. Following approval of creditors, the court must also confirm the plan. "As soon as this confirmation is final, the District Court can repeal the insolvency proceedings and Solarwatt AG can operate as a completely rehabilitated company back in the market," says Bahr.
The restructuring that is planned will focus on the system side. That means production lines need to be closed and employees laid off. Solarwatt would need to part with employees in other departments too. The good news is that 337 of the 435 jobs in Dresden can be kept, according to Neuhaus. Talks are underway for the transfer of employees and social support for those not retained.
Long time shareholder of Solarwatt, Quandt, will act as the main investor, said Neuhaus. It is in the restructuring plan that the capital will be increased from zero to 5 million and Quandt will hold 94 percent and ACTON 1. Beteiligungs GmbH will hold six percent, meanwhile. Quandt will also additionally provide 5 million as a shareholder loan, said Neuhaus. Quandt already wanted complete ownership even before the proceedings started. He previously held 36.3 percent stake.
The Solarwatt board as emphasized that this self-administered restructuring is one of the more sympathetic methods to go about an insolvency, such as Solarwatt’s.