German PV manufacturer centrotherm photovoltaics has agreed a plan it says could bring the company out of insolvency and avoid possible financial collapse.
A vote by creditors on a restructuring plan agreed and authorised by the courts has been set for 29 January 2013. Should the plan be approved, the struggling equipment supplier could come out of administration and operate on a standalone basis with technically little debt and remain a stock market listed company.
Tobias Hoefer, Management Board member of centrotherm photovoltaics responsible for the self-administration, said: “No creditor or shareholder of the debtor is any worse off than would be the case from the liquidation of assets in a standard liquidation procedure. The insolvency plan also enables the continued existence of the company, which in turn preserves the greatest possible number of jobs.”
Centrotherm’s plan is for creditors to agree to transferring 70% of their insolvency claims to an independent administration company, which entitles them to become shareholders of the company.
The plan is for the administration company to acquire 80% of the shares, with the other 20% remaining with the existing shareholders of the debtor, whose share portfolios will be pooled together at a ratio of five to one.
Maintaining a stock market listing is therefore important as creditors could potentially receive full compensation and even exceed debt repayments should the company and its stock recover.
Management said that a recovery in the PV industry could begin in 2014 and the aim was to satisfy creditor’s claims by the end of 2015.