Austrian solar module manufactuer Energetica files for insolvency

From pv magazine Germany

Austrian PV module manufacturer Energetica filed for insolvency with the regional court of Klagenfurt at the end of October.

“Energetica Industries GmbH can no longer meet its current payment obligations,” the company said in a statement. The amount of the liabilities is indicated at €24.8 million.

The insolvency proceedings will concern 112 employees and around 230 creditors. The aim is to continue the business and to conclude a restructuring plan. Creditors have until December 20 to file their claims.

Local media report that the company's management has proposed a plan to reduce, and ‘optimize,' production costs. Among other things, this provides for the changeover from four to three shifts and the adjustment of the overall costs structure of the company. The previously pursued growth strategy of €50 million in annual sales will also be dispensed with for a short time, local media outlet MeinBezirk.at revealed.

At the end of October, Energetica had informed the employees about the difficult situation at a meeting. It also confirmed that persistent problems with the supply chain for raw materials, and the lack of government coronavirus aid had led to a liquidity bottleneck. Meanwhile, the management started looking for new financiers and spoke of “intensive talks” with potential investors who could be interested in joining the company.

According to local media reports, new capital of €1.5 million was still available from the shareholders in August 2021. Half of the funds were provided in the form of a capital increase and a shareholder loan. In September, however, there was a massive drop in orders and sales collapsed. After the potential investor abandoned the scene at the end of September, the over-indebtedness and insolvency became inevitable, as the portal MeinBezirk.at further reports. Talks with other investors have failed.

Energetica was planning to set up a gigawatt-scale production operation for solar modules at its factory in Liebenfels. The ramp-up phase of the manufacturing facility was significantly affected by the Covid-19 crisis and the targeted production capacity was never achieved.