Small solar firm, Ralos New Energies has become another German company that has succumbed to bankruptcy as the industry battles overcapacity and plunging prices, squeezing margins. Subsidiaries of the holding company, Ralos Projects and Ralos Solar are included in insolvency proceedings at the district court in Darmstadt, Germany.
A short management statement highlighted that the despite efforts to restructure and reduce financial problems were insufficient, especially in light of recent planned changes to the German feed-in tariff and an effective cap of installations around 75% less than was installed in the country in 2011.
Ralos management said in the statement that; “The Management Board and the Supervisory Board very much regret for our shareholders, employees and suppliers that this consequence could not be avoided although there was a great mutual agreement for the measurements which have to be taken for a successful financial future.”
In mid-2011 Ralos had strengthened its balance sheet by up to €20 million, having been struggling since 2010 and had been reorganising its business to push for greater sales outside Germany. Sales in the first half of 2011 totalled €36.4 million with an EBIT of €0.65 million.