High profile German solar manufacturer Q-Cells has failed to stave off insolvency. This is direct result of failing to agree to a financial restructuring with all creditors.
The company said it would request the opening of insolvency proceedings at a court in Dessau, eastern Germany, on Tuesday. Executives are holding final hope in securing the survival of the company while under administration.
Q-Cells are one of the worlds largest makers of photovoltaic cells, used in the construction of solar panels. They have been under constant pressure from the intense competition from cheaper Chinese manufactures as well as a series of cuts in the German solar rebates and subsidies.
A penny stock since late last year, Q-Cells stock tumbled 41 per cent on Monday to close the day on the Frankfurt stock exchange at €0.13 per share. The company had listed some seven years ago at €38 per share.
Q-Cells last week reported a net loss of €846m on group revenues of €1bn for 2011. But the company, once considered a high-flyer in the sector, still hoped to win enough creditors to restructure its debt and avoid bankruptcy.
Should Q-Cells’ administrator decide the company has no chance of emerging from insolvency on its own, they could try to find a buyer for what is still known as one of the strongest brands in the German – and European – solar industry.
by Australian Solar Quotes