The executive board of solar developer SAG Solarstrom has decided to switch its insolvency – which has so far been managed under self-administration – into general insolvency proceedings on 1 March.
“The opening proceedings have shown that both investors and
creditors have only limited experience with the comparably new process of
self-administered insolvency,” the company said in an ad-hoc statement to stock
“The parties involved agree that the company can be
restructured and reorganized more simply and more quickly using the means of
insolvency proceedings through the better-known general insolvency
Insolvency under self-administration is a procedure in
German bankruptcy legislation similar to the US chapter 11 rule that
temporarily grants the company creditor protection.
Solarstrom’s announcement of insolvency under
self-administration in December was 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, SAG Solarstrom
said it saw no option for implementing a short-term financial restructuring
outside of insolvency proceedings. The proceedings started a week after the
company admitted that negotiations regarding its near-term project pipeline
had fallen through.