Indosolar Ltd. (ISLR), India’s biggest manufacturer of solar cells by capacity, asked lenders to restructure its debt for a second time, saying it has idled a plant because prices are too low to make a profit.
“Due to continued liquidity issues the company has approached bankers for a second corporate debt restructuring package,” the New Delhi-based company said in a filing today. Short-term liabilities exceed short-term assets by 1.9 billion rupees ($31 million), it said.
Indosolar and other local solar manufacturers are asking India to impose duties on equipment imports, alleging that competitors from the U.S., China and elsewhere dumped products in the market. Panel and cell makers globally have struggled amid a supply glut that caused prices to plunge.
Indosolar’s plant remains shut because the high cost of production and low solar cell prices “did not yield margins,” it said. The facility in Greater Noida, Uttar Pradesh state in the country’s north can produce 160 megawatts of photovoltaic cells a year, according to its website.
The company won approval from lenders in January 2012 to reorganize about 3.6 billion rupees of debt, according to its annual report that year.
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