A cash injection from Qatar Solar Technologies and bondholder settlements on some of its debts would seem to have pulled SolarWorld from the brink of bankruptcy.
Firstly, Qatar Solar Technologies has taken a 29% stake in the struggling company at a bargain price of around €50 million, while Solarworld’s CEO, Frank Asbeck, personally injects €10 million but his share in the company falls below 20%.
Secondly, a complex agreement is in the making regarding portions of SolarWorld’s two major bonds with some of the bondholders converting some of the debt (60%) into equity, with creditors gaining a 45% holding in the PV module manufacturer.
The combined restructuring predominantly hits existing shareholders, which will see the stake in the company sink to just around 5%, compared to around 80% previously.
With the rescue restructuring efforts initiated SolarWorld could now focus on restoring customer confidence and rebuild its module sales and PV project business after quarterly sales declined significantly in the last 12 months.