German court opens Sunways insolvency proceedings

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A German court in the city of Constance on Monday opened insolvency proceedings pertaining to the assets of beleaguered German solar manufacturer Sunways AG.

The court has asked Sunways creditors to report their claims in writing to the company’s court-appointed insolvency administrator, Thorsten Schleich, by June 10. The court also established a preliminary creditors’ committee for the period up to the date of the creditors’ first meeting, to be held on July 9.

Sunways, a subsidiary of the financially troubled Chinese group LDK Solar, announced in March that it had filed for insolvency just seven months after exiting previous proceedings.

The company announced earlier this month that it had received a purchase offer for its inverter business from an unidentified bidder, but that it had not been enough to cover the debt it owes to its creditors.

The company managed to stave-off insolvency proceedings in August last year by persuading lenders to take a €1 million haircut on €7.6 million of outstanding loans. The company also wiped an estimated €10 million liability off its balance sheet with a one-off, undisclosed payment to settle its wafer purchase agreements.

Since then, Sunways AG has had its shares suspended from the electronic trading system Xetra, while parent company LDK Solar has been delisted from the New York Stock Exchange.