Solarworld Holders to Lost 95% in Debt Deal With Qatar

Shareholders of Solarworld AG (SWV) will lose 95 percent of their holdings in Germany’s biggest maker of solar panels in a capital restructuring aimed at bringing in new investors to save the company.

Qatar Solar S.P.C. seeks to buy a stake of 29 percent in the Bonn-based company by purchasing new shares after the current share capital is reduced 150:1, Solarworld said today in a statement outlining an agreement with its creditors. Bondholders will receive the proceeds from the Qatari investment and an additional share purchase by Chief Executive Officer Frank Asbeck, it said.

“The agreement is now subject only to reservations of corporate body consent on the part of two participating financial institutions,” the company said. “The management board assumes that this reservation will be resolved and that the agreement will become effective shortly.”

Solarworld is among companies battling competition mainly from China that cut solar panel prices about 20 percent last year. That tipped more than a dozen German businesses including Solar Millennium AG (S2M) and Q-Cells SE, once the largest solar-cell maker, into bankruptcy.

Shares of Solarworld fell as much as 20 percent in Frankfurt trading after closing up 18 percent yesterday.

Solarworld, which seeks to hold an extraordinary general meeting on Aug. 7, said the restructuring is to close between Nov. 2013 and Feb. 2014.

To contact the reporters on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net; Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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