SiC Processing has finalised a last minute deal to delay payments to major creditors until 28 February 2013.
The company said the move was prompted by volume and price declinations, incomplete liabilities from its expansion program of the past two years, and a parent guarantee for a rental contract with insolvent REC Wafer Norway.
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The creditors, which include the Norwegian landlord of SiC Processing, a supplier of SiC recycling lines and a shareholder of SiC Processing, agreed to delay the company’s outstanding debt until 28 February 2013.
In order to guarantee cash flow after the February date, SiC Processing and its shareholders plan to develop a restructuring plan. The plan will be presented to its major creditors and holders of the SiC Processing bond. The company’s intent is for the restructuring plan to help it maintain its competitive position in the market after this coming February.