To avoid further drains on its battered balance-sheet, REC said it would start winding-up REC Wafer Norway via bankruptcy proceedings. The solar wafer operations at two sites in Glomfjord and at Herøya have already been permanently closed down. The bankruptcy of REC Wafer Norway was said to not have an effect on REC Solar and REC Silicon operations, which continue to operate as normal.
REC said that the carrying value of liabilities for REC Wafer Norway had exceeded the estimated value of assets by as much as NOK 1.2 billion (US$204 million), which if the company continued to support the winding-up of the operations would be financially liable.
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However, REC said that it would still be liable for additional costs and losses related to certain guarantees, loans and indemnity agreements related to REC Wafer Norway, which the company said could be as much as NOK 0.4 billion(US$68 million), but was subject to change.