Spanish solar manufacturer Cel Celis has opened insolvency proceedings at the commercial court of Leon, in northern Spain, amid reports that the company is in €30 million ($39.3 million) of debt.
The company cited as a major factor an immediate cash flow issue resulting from the Castille Y Leon’s regional government failing to provide €5 million ($6.5 million) in subsidies that were promised to the company in an agreement between the two parties reached in 2010.
According to local newspaper Diario del Leon, company director Víctor Tejuca said there was no financial contingency plan to deal with the €5 million shortfall, but he remained adamant that restructuring of the company would take place, rather than closure of facilities or liquidation of the company.
Tejuca also stated that the majority of the €30 million figure that Cel Celis owed was guaranteed by long term partners and investors, the majority of which would keep faith with the company, he claimed.
At the time of writing production had been suspended at their factory in San Roman de Bembibre, with most or all of the 25 factory workers Cel Celis employ given maintenance duties on the factory floor so that the company would be ready for production to resume in the near future. There was no word on the current status of 70 members of Cel Celis call centre staff.
The company has been placed in the hands of auditor Manuel González García of Auditas, who was appointed insolvency manager as proceedings began.