Citing an inability to expand the facility and upgrade its process technology to produce higher-efficiency solar cells, ARISE Technologies filed for insolvency for its wholly owned German subsidiary.
October 13, 2011 — The wholly owned German subsidiary of ARISE Technologies Corporation (TSX:APV and Frankfurt:A3T), ARISE Technologies Deutschland GmbH, has gone into structured insolvency, failing to find the financing required to expand the facility and upgrade its process technology to produce higher-efficiency solar cells.
In 2008, ARISE began increasing photovoltaic (PV) cell production targets at its facility in Bischofswerda, Germany. The plan was to ramp another 56% to 560MW by 2010.
It is expected that very shortly the German court will assign an insolvency manager to manage the transition of ARISE Germany’s operation and work with ARISE management to maximize value for the Company’s creditors and shareholders. During this process, a range of potential outcomes could occur including the injection of new capital into the business, the sale of the business assets to a third party, or an orderly shutdown of the operation and asset disposal.
ARISE will continue to work with its financial advisor, Canaccord Genuity, during this period as it continues its work to evaluate strategic alternatives for the Company. Arise’s Canadian operations are not presently affected by the actions taken in Germany.
Dan Shea, ARISE president and CEO, said that his team continues to work on refinancing the international company as a whole, and called the insolvency action “disappointing.”
ARISE Technologies Corporation, based in Waterloo, Ontario. The PV (photovoltaic) cell manufacturing division (ARISE Germany) is located in Bischofswerda, Germany. The PV silicon division is using a proprietary method to produce silicon at 7N+ high-purity (99.99999% purity) for PV cell applications, based on a simplified chemical vapor deposition process. The division is focusing on scaling up its process to provide ARISE with control over its supply, costs, and quality. The PV systems division has been providing rooftop and ground-mounted PV solutions since 1996.
The company’s shares are listed on the Toronto Stock Exchange under the symbol APV and on the Frankfurt Open Market Exchange under the symbol A3T. Additional information is available at www.arisetech.com and www.sedar.com.
Other financial actions in the PV industry: