Stricken German solar manufacturer Sunways AG‘s respite from insolvency has lasted only seven months with the Konstanz-based subsidiary of debt-hobbled Chinese parent LDK Solar filing to re-enter proceedings today.
The solar cell, module and inverter manufacturer announced yesterday it will today file for insolvency with the Konstanz local court ‘due to the illiquidity of the company.'
Sunways exited an insolvency brought on by one of its creditors BW Bank a Stuttgart-based lender in August, after renegotiating the terms of two crippling wafer purchase agreements and the terms of its bank loans.
Sunways board ‘in talks with investors'
The latest move comes, according to yesterday's statement, at a time when the Sunways board is ‘already in talks with potential investors' and the company says its aim is to find a ‘viable restructuring' and agreement with its creditors.
Chinese parent company LDK, itself struggling under an eye-watering debt pile and whose future seems even more precarious in the wake of recent high-profile Chinese solar defaults by Chaori Solar and Baoding Tianwei Baobian Electrical, owns a 71% controlling stake in Sunways.
With the latest insolvency proceedings affecting both the Konstanz-based Sunways AG and its Arnstadt-based Sunways Production subsidiary, the directors may be looking to the Middle East where wealthy investors have recently shown a desire to harness European solar expertise by acquiring ailing businesses.
Sunways had exited insolvency proceedings last year by wiping an estimated 10 million liability off its balance sheet by making an undisclosed one-off payment to settle the wafer purchase agreements, due by the end of last October, as well as renegotiating 7.6 million of bank loans by persuading lenders to take a 1 million haircut in return for a 5.6 million settlement, due by the end of last August, and a further 1 million payment in August 2015.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.