Solarstrom project deal collapses

Shares in SAG Solarstrom have plummeted by more than 30% over the past two days, after the German PV group admitted that negotiations regarding its near-term project pipeline have fallen through.

Last week Solarstrom issued a profit warning for 2013, stating that “advanced stage” negotiations regarding its pursuit of a “three-digit MW range” project pipeline had been delayed – meaning it would be unable to complete any of the projects this year as hoped.

But Solarstrom has followed up by saying that the negotiations have collapsed altogether.

The reason, the company acknowledges, is its own failure to stump up the “disproportionately high” down payments and performance bonds demanded by its negotiating partner in advance of the projects entering construction.

“The guarantees and warranties which are increasingly required on the market can amount Log in to read complete article.

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