Singulus' HQ. The company's rescue plan has moved a step closer following a positive shareholder vote. Image: Singulus.
German PV equipment specialist Singulus has cleared the second hurdle in its financial restructuring process.
Shareholders yesterday approved a proposed debt-equity swap the company is looking to implement to stave off likely insolvency.
The backing of shareholders follows the endorsement the day before by bondholders.
Singulus said that although the latest vote meant the main prerequisites for the restructuring had now been met, some shareholders had filed objections to the plan, as had some of its bondholders the previous day.
The company said it would have to wait to see whether this would result in the filing of voidance actions, but reiterated previous assertions that it was “confident” it could override these in a fast-track proceeding. PV Tech is seeking further details on this and what the next step is in the process.
Singulus’ debt restructuring had become necessary after it recorded heavy losses in the 2014 financial year.
More encouragingly, Singulus says it has a strong order book, particularly in its solar business, which is expected to account for around 70% of sales in the coming year, according to the company.