EPC and project developer, SPI Solar had only US$1 million in cash and cash equivalents at the end of 2013, according to its fourth quarter and Annual Report financial documents, having made a net loss for the year of US$32.2 million on revenue of US$42.6 million.
Majority owned by LDK Solar, which is undergoing bankruptcy proceedings and de-listing from the New York Stock Exchange (NYSE), SPI Solar warned in its 2013 Annual Report of a number of financial issues it faced that raised “substantial doubt as to our ability to continue as a going concern”.
Not withstanding LDK Solar’s inability to provide funding to either SPI Solar or Sunways, which has already filed for insolvency in Germany, the company defaulted on interest payments on a loan from Cathay Bank, which SPI Solar owes approximately US$4.25 million.
The company noted that it could not pay accrued interest and fees, which could result in the bank foreclosing. SPI Solar had total company deficit of US$56.1 million at the end of 2013, much of it owed to LDK Solar.
The company has also not received funding from China Development Bank (CDB) for several PV projects already completed, an issue that had previously forced the company to obtain upfront payments from customers for PV modules produced by LDK Solar’s subsidiaries as part of the obligations under CDB agreements to provide project finance.
SPI Solar had net sales for of US$15.4 million in the fourth quarter of 2013, compared with US$13.0 million in the same period a year ago.
The company had a total of only 15 full-time employees, of which 13 were located in the US and two were located in China at the end of the first quarter of 2014.
Charlotte Xi, president, global chief operating officer and interim chief financial officer said: “We will continue to focus on our EPC specialties and explore further business opportunities in solar. In addition, we believe SPI’s unique balance sheet position will allow us to effectively resolve the note from Cathay Bank in the near future.”