Centrotherm unveils insolvency plan


On the evening of Wednesday, October 24, the Germany-based photovoltaics company published a draft of its insolvency plan. This should now be aligned with the major creditor groups, said centrotherm.

The draft lays out that centrotherm remains a public limited company, but that its capital structure is reorganized in a way that unsecured creditors' receivables are transferred to the company in exchange for stock. In this way, interests should be balanced and the preservation of centrotherm will be secured.

The redevelopment should also carry a share capital reduction, under which the company’s remaining shares will be consolidated in a 5:1 ratio, and a subsequent capital increase is carried out back to the original level. Centrotherm’s share capital currently amounts to around €21.2 million.

"The company's unsecured creditors are to assign 70% of their unconditional and unrestricted receivables to an administration company, which will subscribe for the total of 16,929,904 new shares as part of the debt-for-equity swap. Payment of the remaining 30 % of the receivables will be deferred until the end of 2015 on a non-interest-bearing basis," said the company in a statement released.

After these procedures, the administration company should hold 80% of centrotherm’s share capital and shares. The creditors will not participate directly as shareholders, however.

Centrotherm’s board expects 2014 to be a turning point for the company, when a "significant" market growth for photovoltaic production technology is expected, and a return to profitability forecast. However, for the coming year, it predicts a loss of €24 million.

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