German PV project developer Phoenix Solar AG will start insolvency proceedings next week. The company said that its U.S. subsidiary Phoenix Solar Inc. has received a payment request in the amount of $8 million from an unnamed major U.S. customer. As a result, a German bank consortium has asked the parent company to pay an amount of the same volume.
“This exceeds the financial capabilities of Phoenix Solar AG, therefore leads to insolvency and forces the Board to start the insolvency proceedings,” it said on Friday.
The board said it is planning to file for insolvency in the coming week at the district court in Munich. The attempts to find an amicable solution with the U.S. customer and the bank consortium in Germany have been unsuccessful.
Phoenix Solar had to lower its outlook for the current fiscal year. This was due to delays in the realization of some projects. Until recently, Phoenix Solar had been hoping for an improvement in 2018, although it repeatedly pointed to the risk of delays in its projects.