The final recovery quota for unsecured creditors will be determined and published in the restructuring plan after the court confirms it. The preliminary assessment of the management is based on preliminary figures and has not been audited or reviewed by the company auditor. The preliminary figures have been based on certain assumptions which are subject to management estimates such as write-downs of assets, in particular the value of shares in operating subsidiaries, a preliminary calculation of liquidation proceeds for unsecured creditors and preliminary investor interest.
The Amberg court had, upon application by SiC Processing GmbH on December 18, 2012, ordered debtor-in-possession proceedings in accordance with section 270b of the German Insolvency Code as reported by the company on December 20. The Court followed the proposal of the company and appointed Dr Hubert Ampferl, partner of Nuremberg-based law firm Dr Beck & Partner, as preliminary supervisor.
SiC Processing has been active in the slurry recycling business with production sites in Germany, China and the US. The plants in Norway were shutdown mid 2012 following the pullout of its Norwegian customer due to market conditions. In the first half of 2012, EUR 11.4 million was generated by the now-dormant sites in Herøya and Glomfjord, Norway, which were shut down in the first half of the year. These sites had been operated by a Norwegian subsidiary of SiC Processing, SiC Processing AS for supplying the customer REC Wafer Norway.
The company states that this action is a consequence of the declines in the solar industry and the impact this has in turn had on SiC Processing and its customer base.