Q-Cells updates restructuring plan: provides four-year revenue guidance

Facebook
Twitter
LinkedIn
Reddit
Email

Financially challenged Q-Cells said it will restructure its finances in two key steps to avoid payment defaults to bondholders. The company confirmed 2011 revenue forecast of around €1 billion but said total losses for the year had yet to be concluded. Q-Cells guided a further decline in revenue in 2012 to approximately €865 million. A return to profitability was not expected until 2014, though this would only occur should all three outstanding convertible bond renegotiations prove successful.

The most immediate challenge is coming to an agreement with holders of the convertible bond due at the end of February 2012. Q-Cells said in a financial filing that “intensive negotiations” had been conducted, though a successful outcome had yet to be reached. Q-Cells had proposed a partial repayment of the outstanding bond volume in tranches over a set period of time.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

However, Q-Cells noted that due to a Frankfurt Regional Court ruling, on Monday, January 23, a new bond law from 2009 does not apply to the February 2012 bond issue. Q-Cells had hoped that by the appointment of a joint representative with bondholders, a deal could be struck that could have deferred the convertible bond maturing, yet the court ruled such a procedure was not legally effective. Though Q-Cells said it would appeal the decision, the current ruling would mean Q-Cells would need to reach individual agreements with the creditors; deals of this nature are never certain.

The plan put forward by Q-Cells for convertible bonds due in 2014 and 2015 is to have these restructured via a debt-to-equity swap.

The company also warned that a return to profitability, outside the bonds being successfully restructured could be impacted by the ongoing price wars, should they continue. The statement also noted that the profitability assumptions were based on cost leaders being able to recoup their cost of capital and return to acceptable margin levels, especially after a massive global sector consolidation.

Q-Cells therefore expected to return to sales growth in 2014, via its plan to become an international supplier of photovoltaic solutions, reducing dependence on solar cells and individual components.
 

Read Next

September 17, 2025
US renewables developer Longroad Energy has reached financial close for its 400MW 1000 Mile solar project in the US state of Texas.
September 17, 2025
Spanish renewables developer and operator Acciona Energía has commissioned its 412MWp Juna solar PV plant in Kawani village in the western state of Rajasthan. 
September 17, 2025
Spanish IPP Velto Renewables has acquired a portfolio of 53 operational solar assets in Spain with a combined capacity of 260MW.
September 17, 2025
Struggling Swiss solar manufacturer Meyer Burger has formally entered into a debt moratorium, with the possibility of rescuing the entire group now looking unlikely.
September 17, 2025
Nexamp has secured US$350 million through a long-term financing facility to expand its 6GW utility-scale solar and battery storage pipeline in the US. 
September 17, 2025
Chinese module producer DAS Solar is planning a 5GW manufacturing facility focused on producing high-efficiency back contact cells.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA