Having been impacted by poor sales and reduced demand in the final quarter of 2014, German solar module producer Solar-Fabrik has confirmed that it has filed for insolvency in self administration in an attempt to ward off further liquidity shortfalls in the first two quarters of the year.
The company filed for an application to self-administer insolvency proceedings today at the Local Court of Freiburg, Germany, and will seek to implement necessary restructuring as soon as possible.
According to a statement released by Solar-Fabrik, weak demand and increased price pressure over the past few months has severely impacted the companys bottom line, and the anticipation is that the situation will worsen over the coming months unless action is taken.
Solar-Fabrik believes its best possible hope to stave off insolvency is to self-administer its restructuring, building upon a raft of changes introduced last year designed to ease its financial burden.
These changes included shorter working hours for its staff in Freiburg last year, and the management board is keen to explore other means to tackle the ongoing market pressures that have caused Solar-Fabriks cash reserves to dwindle.
The insolvency in self administration also applies to the companys subsidiary, Solar-Fabrik Wismar GmbH. The company was keen to stress, however, that it is not insolvent and does not suffer from over-indebtedness.