SolarWorld: short-term solution from investor seems possible

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SolarWorld’s provisional insolvency administrator, Horst Piepenburg, is currently in talks with a group of investors that may be interested in acquiring the company’s German manufacturing facilities in Freiberg and Arnstadt. The announcement was given by the solar module manufacturer on Wednesday. The acquisition, however, would include only 450 workers employed at the two factories, while another 1,200 would be transferred to an Employment and Qualification Company (BQG), which would be in charge of their relocation.

At the end of July, insolvency payments, which are granted by the German government for a 3-month period after the opening of the provisional insolvency proceedings and cover salaries, will expire. The group of investors would eventually finance business operations from August 1 until mid-August.

Piepenburg said he believes these talks will be successful and will lead to the signing of a final contract in the near future.

At the end of 2016, SolarWorld had 3,000 employees in Germany and the United States. Most of them, around 1,300, were working at the Freiberg factory, while another 750 were active at the Arnstadt facility and 250 were located in Bonn. The U.S. production remains untouched by the insolvency proceedings of the German companies. Two weeks ago, the group’s U.S. unit obtained a $6 million financing from its lenders, which have permitted the sale of non-operational assets and the continuation of business operations.

SolarWorld AG filed for insolvency in Germany in May, sparking speculation that SolarWorld Americas would tumble immediately afterwards.

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