“The opening proceedings have shown that both investors andcreditors have only limited experience with the comparably new process ofself-administered insolvency,” the company said in an ad-hoc statement to stockmarkets.
“The parties involved agree that the company can berestructured and reorganized more simply and more quickly using the means ofinsolvency proceedings through the better-known general insolvencyproceedings."
Insolvency under self-administration is a procedure inGerman bankruptcy legislation similar to the US chapter 11 rule thattemporarily grants the company creditor protection.
Solarstrom’s announcement of insolvency underself-administration in December was the latest in a series of insolvencies inthe once-mighty German solar industry, which in large parts has not been ableto withstand the pressure of cheap Chinese competition.
After the failure of the refinancing talks, SAG Solarstromsaid it saw no option for implementing a short-term financial restructuringoutside of insolvency proceedings. The proceedings started a week after thecompany admitted that negotiations regarding its near-term project pipelinehad fallen through.
