Court orders official insolvency proceeding for Sunways

The Konstanz District Court opened insolvency proceedings over Sunways AG’s assets on Tuesday.

According to the company, this decision was made as a result of the so-called "third-party insolvency application". The preliminary insolvency proceedings also apply to Sunways Production GmbH in Arnstadt, Germany. Thorsten Schleich has been appointed as the provisional liquidator. Information on how things will proceed and the impact on operations has not been announced.

Sunways, in which Chinese company LDK Solar holds majority share, have been struggling with declining sales and heavy losses. In April the company decided to lay off about half of its workforce. To add to the blow, just in April, the banks decided to cancel an $8.6 million credit.

The board of directors have been negotiating with the banks on a longer repayment period for the loans. The parent company LDK Solar is also in financial trouble and has not been able to pay back an overdue convertible bond.

Translated by Shamsiah Ali-Oettinger.