Update: Evergreen Solar warns over possible Sovello bankruptcy: only weeks to find a buyer

Facebook
Twitter
LinkedIn
Reddit
Email

Update: In a conference call with financial analysts, held today, Evergreen Solar’s Chairman, CEO and President, Richard Feldt, responded to one of the last questions in the hour long call over the expected outcome for Sovello. He noted that the company had only weeks to seek a buyer that would probably acquire the company at ‘fire-sale’ prices or enter into insolvency.

“It’s very, very hard to handicap. I do think that whatever the outcome is, it’s going to happen over the next few weeks,” responded Feldt. “Probably only two, one it goes insolvent, two someone ends up coming in and acquiring the assets at fire sale prices.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Feldt’s comments at the end of the call paint a gloomier picture of the precarious position Sovello is currently in, compared to the prepared wording in Evergreen’s press release, detailing fourth quarter financial results, and previously issued.

Analyst, Ben Pang of Caris & Company asked the pertinent question.

……………………………………………………………………………………….

In releasing fourth quarter, 2009 financial results, Evergreen Solar warned that its German-based joint venture Sovello could face bankruptcy over the issue of repaying an EU grant, which was deemed to have been wrongly applied for due to the involvement of Q-Cells as a partner that exceeded qualification levels for a small to medium sized firm. Sovello is appealing the EU Commission findings.

Sovello has been in default under its bank loan agreements since the end of 2008, though a bank syndicate has waivered some of Sovello’s loan covenant violations, and has not yet demanded repayment, the strapped for cash ‘String Ribbon’ producer continues to struggle financially.

Evergreen said in a statement that it recorded a non-cash charge of approximately US$40.9 million, reflecting a final write-off of its actual remaining investment in Sovello.

Other charges on Evergreen from its Sovello involvement in the quarter, included US$8.1 million payments under a guarantee and US$7.3 million for estimated payments related to Sovello’s bank and for other expected costs.

Read Next

September 12, 2025
Colombian energy supplier Celsia is seeking more than US$1.2 billion in investment to build wind and solar generation projects in Peru. 
September 12, 2025
German trade association BSW-Solar has called the German government for a simplified, standardised and more digitalised grid access for solar PV and energy storage operators.
September 12, 2025
ACME Venus Urja has secured INR3.8 billion (US$43 million) to develop and construct a solar-plus-storage project in Barmer, Rajasthan.
Premium
September 12, 2025
Vote Solar's Sean Garren tells PV Tech Premium that Georgia Power's latest IRP is 'skewed so heavily towards fossil fuels'.
September 11, 2025
Founder Group has won a RM10 million (US$2.3 million) engineering, procurement, construction and commissioning contract for a 30MW solar plant in Malaysia.
September 11, 2025
German renewable energy developer ib vogt has signed a 70MW solar PV virtual power purchase agreement (vPPA) in Romania.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines