The World's #1 Renewable Energy Network for News, Information, and Companies.

Solarworld Net Loss Widens, Proposes Debt-to-Equity Swap after 2012 Loss Widens

Solarworld Net Loss Widens, Proposes Debt-to-Equity Swap after 2012 Loss Widens

Solarworld AG (SWV) made a preliminary agreement with most of its creditors that will allow Germany's biggest maker of solar panels to reduce its noncurrent liabilities by about 60 percent.

Solarworld will propose a capital reduction of about 95 percent, combined with a capital increase against contribution in kind to an extraordinary shareholders meeting, the Bonn-based company said today in a statement today. The preliminary deal was struck with creditors representing about 80 percent of loans, it said.

As part of the capital increase, about 60 percent of liabilities will be discharged by a debt-to-equity-swap, Solarworld said. The deal is subject to the approval of committees, it said.

“For the company and employees it’s good news that a solution has been found for at least a part of its debt pie,” Stefan Freudenreich, an analyst at Equinet Bank AG in Frankfurt, said by phone. “For current equity holders it’s bad news as they will lose almost everything.”

Solarworld, which yesterday said its 2012 net loss widened 55 percent to 476.9 million euros ($624 million), is among companies battling competition mainly from Chinese producers that saw solar panel prices drop by half in 2011 and another 24 percent last year. That tipped more than a dozen German businesses including Solar Millennium AG (S2M) and Q-Cells SE, once the largest solar-cell maker, into bankruptcy.

The shares gained as much as 6.1 percent after the restructuring announcement before retreating 2.4 percent to 69 euro cents at 12:49 p.m. in Frankfurt. They’ve slumped 49 percent in six months.

Solarworld has 150 million euros of bonds maturing in 2016 and 400 million euros worth due in 2017, according to data compiled by Bloomberg.

Copyright 2013 Bloomberg

Lead image: Debt folder via Shutterstock

RELATED ARTICLES

India's Seabiscuit: How Solar Energy Can Be the Symbol of Hope for Electricity Woes

Aditya Goel, Ornate Solar For those unfamiliar with the story of the horse that Hollywood made famous, Seabiscuit was a small horse who had an inauspicious start to his racing career. History though, remembers Seabiscuit not for his diminutive...
Tesla batteries

Advanced Microgrid to Buy Tesla Batteries for Storage Projects

Justin Doom, Bloomberg Advanced Microgrid Solutions, a provider of energy-storage systems, agreed to buy as much as 500 megawatt-hours of battery capacity from Tesla Motors Inc.
Gavel

Three Chinese Solar Panel Groups Lose Exemption From EU Tariffs

Jonathan Stearns, Bloomberg

The European Union applied tariffs on three groups of Chinese solar-panel makers that have been exempted from the levies, potentially reviving tensions in the EU’s biggest trade case of its kind.

Stock graph

Green Bonds Sprout as Wall Street Embraces Renewable Energy Debt

Cordell Eddings, Bloomberg Bonds backing clean energy and other sustainable initiatives are booming. Investors are snapping up green bonds at the fastest pace on record, as big banks like Morgan Stanley and Bank of America Corp. pile in with new iss...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

PV-301: Advanced PV Design & Installation

This highly desirable and advanced course is intended for the profession...

PV-401: Advanced Field Training

Real world on the job solar installation, training, and experience is th...

PV-201: Introduction to PV Design & Installation

PV 201 Introduction to PV Design & Installation is simply the best i...

COMPANY BLOGS

Five Reasons to Go Solar Now

Solar’s popularity has skyrocketed recently, thanks to a price dro...

Up to Bat – Why More Solar Companies Are Thinking Seriously About A...

Given the growth of the solar industry in the U.S., with 2014 year-...

How to Reduce Soft Costs With a Critical Path Map

For solar installers, soft costs are a fact of life. However, they don&r...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS