Struggling PV systems supplier, CENTROSOLAR, is seeking creditor protection via the Local Court of Hamburg.
CENTROSOLAR AG and CENTROSOLAR Sonnenstromfabrik GmbH are seeking to restructure debts under the court's ‘protective shield proceedings’ process and will continue operations during the three-month period allocated under the system.
The company said in a statement that Renusol GmbH, CENTROSOLAR America Inc. and CENTROPLAN GmbH were not part of the insolvency proceedings as these subsidiaries were fully financed and were operating profitably or near profitability.
Alexander Kirsch, CENTROSOLAR Group AG CEO said: “Over the past few months we have been working very hard to clear the debt and reconstruct CENTROSOLAR's balance sheet through continuing operations. Our financiers, employees and business partners have supported us in this. However the basis for the restructuring of operations that was announced in parallel was an improvement in the market conditions specifically from CENTROSOLAR's perspective, following the shedding of overcapacity in the market. The introduction of anti-dumping regulations by the EU in the course of this summer is likewise expected to provide a positive impetus. But the recovery is happening later than originally expected. That is why we have reached the conclusion that we need to accelerate and promote the reorganisation of individual group companies by making use of protective shield proceedings, along with the broader scope this approach offers.”
CENTROSOLAR noted that it had achieved revenue of €27.5 million in the third quarter of 2013, down 40% from the same period a year ago and a loss of €4.4 million. Losses for the first nine months of 2013 stood at €18.2 million, according to the company.
Separately, solar module glass manufacturer, CENTROSOLAR Glas GmbH & Co has also entered insolvency proceedings in the Local Court of Nuremberg, Germany. Insolvency administrator, Daniel Fabian has been provisionally appointed.
PV Tech reported earlier this year that Belgian solar glass company Ducatt NV has purchased the solar glass manufacturer after losses of €12.6 million in 2012.
CENTROSOLAR has been in financial troubles for several years.