Solen reports insolvency

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Solen AG will file for insolvency at the Meppen district court today, Tuesday April 16. The board announced this in a press release today. It will be business as usual in the meantime.

The goal is to continue to be able to run all businesses belonging to Solen. There are apparently interested investor requests for operational units of the company already. The board would have to decide and evaluate these requests and further offers with the insolvency administrator that the district court would be appointing. The company sees the need for reorganization as well. Despite the circumstances, the board remains optimistic that a majority of jobs will be retained.

There have already been indications that Solen would not be able to repay the more than €2 million interest accumulated on the loan. Lack of participation on the creditors side resulted in two unsuccessful meetings. The Solen management board had already started thinking about bankruptcy proceedings beginning of April.

Solen’s head Albert Kupfer explained, "Due to the poor turnover caused by substantial cuts in the EEG, the huge fall in prices over the last two years and the high interest burden as a result of the corporate loan, the company was no longer able to comply with their obligations to the creditors."

The delay of the sale of a PV project in Italy added to the burden as well. Kupfer added that the profits from the subsidiaries in the U.S. and the U.K. were also not sufficient to cover the interest of more than €2 million for the loan creditors. The total debt amounts to more than €27.5 million.

Translated by Shamsiah Ali-Oettinger