Sunways announced today in a company statement that after the appointment of a preliminary insolvency administrator following a third party application, business operations had "largely returned to normal".
The debt-ridden company had been facing a difficult financial situation ever since two banks had used their extraordinary right to cancel early their credit lines worth $8.6 million on April 23. Originally, the line of credit was set to expire in September 2013, but the banks decided to terminate it early due to the current economic situation of the solar industry and the company.
However, the associated restrictions were mainly eliminated by the arranged proceedings. According to the statement, the appointed liquidator is in charge of verifying the existence of insolvency reasons and protecting the companys assets for the claims of creditors.
Hoong Khoeng Cheong, chairman of the management board and CEO of Sunways AG said in the company statement: "We want to use the time ahead and, with the support of all stakeholders, avert insolvency proceedings. In this way we can reach the best solution for everyone: customers, suppliers, banks, shareholders, and employees. We aim to align Sunways in the next three months so that we will again be able to generate profits in the future".
On May 7, the Konstanz District Court opened insolvency proceedings over Sunways AG’s assets. 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.