Beleaguered German PV manufacturer Centrosolar Group AG has announced that its two subsidiaries Hamburgs Centrosolar AG and Wismars Centrosolar Sonnenstromfabrik GmbH will leave protective shield proceedings as the company sheds more business in its attempts to keep its head above water.
Late last week the entire German operation was placed behind a protective shield designed to enable the company to continue its operations free from creditor demands. However, as part of its restructuring arrangement with the banks, Centrosolar Group AG has agreed to relinquish that creditor protection for its two subsidiaries, effectively forcing Centrosolar AG and Centrosolar Sonnenstromfabrik GmbH to file for insolvency.
"Part of the financing concept is that Centrosolar AG and Centrosolar Sonnenstromfabrik GmbH leave the protective shield proceedings and apply for the appointment of a preliminary insolvency administrator following the regular proceedings in order to provide further comfort to the banks," said a company statement, which also confirmed that Centrosolar Group AG will continue to operate from behind the protective shield as the company explores all re-organization avenues.
It has been a rocky 12 months for Centrosolar, with Centrosolar Glas declared insolvent earlier this month, and Q1 revenues for 2013 down by 43% on last year. After selling off or winding up various subsidiaries, the company applied for a protective shield last week, with annual revenues down to just $85 million after reaching $145 million in 2012.
This latest announcement could be considered a last throw of the dice for Centrosolar Group AG as it maneuvers its operations into their most streamlined and manageable guise yet. Further financing decisions are set to be finalized early next week, confirmed the company statement.