REC unveils $218m refinancing plan in bid to stop the rot

REC's factory in Singapore is struggling to keep up with module price declines

REC

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By Karl-Erik Stromsta London

 Friday, June 22 2012

Updated: Monday, November 26 2012

REC softened news of further write-downs by proposing a refinancing package that analysts say would give the PV manufacturer a good shot at weathering the current storm and returning to profitability when the industry turns a corner.

The Norwegian PV group revealed that it will swallow impairment charges totaling NKr3.5bn ($587m) in the second quarter related to its integrated factory in Singapore, which is struggling to keep up with rampant module price declines.

On top of that, REC will take a NKr750m hit in the second quarter – and an estimated NKr966m more in future periods – related to the shutdown of all production in Norway, a decision finalised in April.

But chief executive Ole Enger also unveiled a sweeping refinancing package which, if approved by creditors, would “allow the…

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