Norwegian group Innotech Solar AS and its three German subsidiaries have filed for insolvency.
Innotech filed for insolvency on Tuesday in Narvik, Norway, while the German subsidiaries, ITS Innotech Solar Modules GmbH, ITS Halle Cell GmbH and Energiebau Solar Power GmbH in Cologne, filed for provisional insolvency on Wednesday in the cities of Halle and Cologne. Swedish module maker SweModule AB filed for insolvency two weeks ago, according to a statement released by legal firm Schultze & Braun.
The court in Halle has appointed Schultze & Brauns Rüdiger Bauch as acting insolvency administrator for ITS Innotech Solar Modules and ITS Halle Cell. Bauch will oversee the opening of proceedings in the interests of creditors, accompany restructuring measures and monitor the financial position of the company. A provisional liquidator for Energiebau, a PV wholesaler, has yet to be appointed.
"Although we have a unique optimization process for solar cells and excellent employees, and investors have long supported us, we did not succeed in building the necessary financial stability, said Innotech Solar CEO Jerry Stokes.
Stokes added that such stability was indispensable in the turbulent times the PV industry was currently going through. The chief exec added that, in his estimation, it was not the groups business model that was responsible for the companys failure but rather the overall uncertainty in the European PV market and the frequent course changes in government policy.
Also contributing to the companys financial woes were what Stokes described as the somewhat mild crackdown by the European Union with regards to the minimum import price for modules from China as well as the seasonal decline in demand in recent months.
"We are convinced that leading cell companies will have huge interest in our optimization process, he added. If they use this patented process in their own production lines, they could generate huge profits.
Innotech's unique manufacturing process includes optimizing rejected cells from other manufacturers and then assembling the newly optimized cells in modules.
A total of 120 employees are affected by the insolvency of Innotechs three German subsidiaries.