Updated: There is light at the end of the tunnel for Sunways as it agrees a deal with its previous main bank over credit facilities that led directly to insolvency proceedings in May, 2013.
Germany-based BW Bank agreed to withdraw insolvency actions that are expected to lead to an end of the bankruptcy case, subject to court approval.
Sunways also said that banks had agreed a waiver on the the terms of its credit line repayment. Of the total receivables the amount of €7.6 million, €5.6 million is to be repaid at the end of November, 2013 and a further €1.0 million in August, 2015.
In a follow-up announcement, Sunways also said that it had come to an agreement with its former solar wafer supplier regarding its termination of a long-term supplier deal.
Sunways said that the supplier had agreed to end the long-term supply contracts at the end of 2013.
The cancellation was said to save Sunways around €10 million in provisions and liabilities. However, an undisclosed down-payment figure was to be made by the end of October 2013 as well as full payment of the agreed amount to settle all claims.
The company noted that agreements reached with all suppliers would lead to a financial relief of around €10 million in provisions and liabilities on Sunways Group’s balance sheet.