SAG Solarstrom files for insolvency

A Solarstrom project in the Czech Republic

A Solarstrom project in the Czech Republic

Freiburg-based SAG Solarstrom will file for insolvency today after refinancing negotiations by the loss-making solar developer with banks, creditors and investors failed.

It is the latest in a series of insolvencies in the once-mighty German solar industry, which in large parts has not been able to withstand the pressure of cheap Chinese competition.

After the failure of the refinancing talks, the company says it sees no option for implementing a short-term financial restructuring outside of insolvency proceedings, and won’t make any interest payments on 16 December for its 2010/2015 bond.

The insolvency comes a week after the company admitted that negotiations regarding its near-term project pipeline have fallen through.

“On 18 November 2013, it became apparent that a cash inflow Log in to read complete article.

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