Solon Gets €146M Default Guarantee

The German federal government and the federal states of Berlin and Mecklenburg-Vorpommern last week said that they will provide Solon SE with a combined default guarantee of €146 million which will secure both the organizational restructuring program that was initiated last year and the restructuring of the company’s funding.

The company said that the guarantee is critical to the early conclusion of negotiations on the restructuring of its funding.

On news of the agreement, shares in Solon jumped by 16 percent and was the third-biggest gainers among all German stocks last Wednesday. Solon posted a preliminary operating loss of €195 million euros last year.

Following that news last week, Solon signed an agreement establishing a partnership with the Czech company Energ Servis that is aimed at the Czech photovoltaics market.

Under the terms of the agreement, Solon will supply Energ Servis with 5 megawatts (MW) of solar photovoltaic (PV) modules in 2010. The modules are to be primarily used in on-roof and ground-mounted projects ranging between 200 and 1500 kilowatts (kW)

“We are pleased to have acquired a strategic well-connected partner in the Czech energy market with Energ Servis,” said Stefan Säuberlich, CEO of Solon SE. “We are convinced that the partnership with Energ Servis will strengthen our position in this important country.”

Energ-Servis builds and maintains high-voltage electric networks and plans and builds transformer stations. The company has also been planning and implementing photovoltaic power stations in the solar energy industry since 2008.

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