Germanys Solar-Fabrik has today been told by the local court in Freiburg that its insolvency proceedings will, after all, be allowed to continue under self-administration with immediate effect.
The court had rejected Solar-Fabriks claims for self-administration earlier this month, appointing Thomas Kaiser as insolvency administrator and warning creditors that they have until June 2 to file their claims.
The local court moved against the companys decision to appoint Thomas Oberle to the board, calling the appointment too expensive.
However, the courts about-turn this morning follows the rationale from both the creditors committee and the self administration that this way forward presents the highest probability that the company will be able to find the investors necessary to secure Solar-Fabriks future.
The initial filing for an application to self-administer was confirmed in February following increased price pressures and weak demand damaging Solar-Fabriks revenue stream. In April, the company was hit with another blow as it was forced to issue a product warning relating to some of its solar modules that may have been fitted with faulty junction boxes.
Todays news is a chink of positivity for the company, which will now hope to restructure along its own terms and timeline.