Having previously announced a major reorganization of its entire operations, centrotherm photovoltaics, the second largest equipment supplier to the PV industry, has employed an outside consultancy to prepare discussions with its banks to secure further funding. The move was sparked by short-term liquidity issues after merchandise credit insurance companies, used for products and merchandise being delivered to the company, declined further coverage and guarantees.
The company said in a statement that: ‘Until further notice, open credit and guarantee lines can no longer be utilized given current financing discussions with banks.’
Management also noted that it expected a low double-digit amount in millions of euros in financial costs associated with the merchandise credit insurance cancellations.
Continued overcapacity and cash preservation by PV manufacturers has resulted in capital expenditure being curtailed to historical low levels, while previously secured orders have been pushed-out or cancelled, creating significant cashflow problems for equipment suppliers.
centrotherm photovoltaics issued the statement during the PV industry’s largest annual gathering, Intersolar Europe, held in Munich, Germany. Industry sources close to the company told PV-Tech during the event that bankruptcy protection was both inevitable and imminent.
The company had reported an operating loss of €19.8 million on sales of €698.5 million in 2011.