Just two weeks ago Centrotherm announced reversal of its insolvency proceedings. Now the manufacturer of photovoltaic equipment and systems is forced to announce a less positive development.
On Friday the company, located in Blaubeuren, communicated that CEEG, a subsidiary of Société Nationale de l’Electricité et du Gaz (Sonelgaz) the consortium consisting of Centrotherm photovoltaics and Kinetics Germany cancelled the agreement to build a fully-integrated solar module factory in Algeria.
According to the press release, the original project volume amounted to approximately 290 million. Accordingly, the company reserves the right to take legal action and first of all plans to review the validity and import of the cancellation.
The company went on to indicate that lawful termination would not have any negative impact on either the planned cash flow or the future development of Centrotherm. Any claims for damages against the company would be covered by the insolvency plan.
On May 31st the local court in Ulm reversed the photovoltaic companys current autonomous reorganization under the protection of Germanys new insolvency laws. Further steps include a planned capital write-down and a debt to equity swap.
Translated by Alan Faulcon.