Solar shakeout: Solarwatt files for insolvency
By Anne Zimmermann
Financial & Legal, Markets & Finance
Solarwatt from Dresden has succumbed to the solar shakeout, faced with overcapacity, low-price competitors and subsidy cuts that will go bust. On Wednesday, the company filed for insolvency with a local court, stricken by liquidity problems and debt overload.
The court's agreement means that the company is now able to begin the reorganization process.
"This gives us the necessary flexibility for a sustainable reconstruction,'" said Solarwatt CEO Detlef Neuhaus. Until further notice, business will continue as usual. Solarwatt benefits from the so-called insolvency protection shield, which protects businesses from creditors without using an insolvency administrator, instead using a trustee who is appointed to aid the chairman. The court appointed lawyer Rainer M. Baer as the preliminary trustee.
"Under the given circumstances the protective shield proceeding offers to SOLARWATT AG the necessary flexibility for a sustainable reorganization of the company," commented Detlef Neuhaus, the CEO of Solarwatt. "As soon as our financing has been put on a firm footing, Solarwatt will be better able to use its expertise in the areas of solar systems, energy storage technology and innovative solar modules, in the interest of all stakeholders of the company. During the first six months of 2012 our sales in the promising system area have increased by 120 % in comparison to the previous year. This way we achieved growth far beyond the industry average in a difficult market environment with our powerful products and solutions thanks to the commitment of our employees. This is reassuring for the future," added Neuhaus.
Solarwatt has until July 31st to present the court with a comprehensive and encompassing reconstruction concept. Should court and creditors agree with the concept, Solarwatt could continue business as a refurbished company. Employees' salaries are secured for the coming three months.
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