SolarWorld to Restructure Debt, Sees Serious AdjustmentsChristopher Martin
SolarWorld AG, Germany’s biggest solar-panel maker, said management plans financial restructuring to remain a going concern in what it called an “anticompetitive” market.
“Management is of the opinion that serious adjustments on the debt side are necessary, in particular with regard to the bonds and the assignable bank loans,” the Bonn-based company said today in a statement.
SolarWorld reported net debt of 805.2 million euros ($1.08 billion) as of the end of September, raising its debt-to-equity ratio to 218, more than double the same time a year earlier. The company has 400 million euros in bonds and loans due in 2016 and another 400 million due in 2017, according to data compiled by Bloomberg.
SolarWorld led groups of manufacturers in complaints against unfair competition from Chinese companies in the U.S and Europe. The company’s chief executive officer said Jan. 3 he expects the European Union to announce anti-dumping duties as early as May. The U.S. imposed duties on some Chinese manufacturers last year.
Reductions in solar subsidies and increased competition from Chinese manufacturers created a global glut of panels over the past year and led a group of German panel makers including Q-Cells SE, Solon SE, Solar Millennium AG and Solarhybrid AG to seek protection from creditors.
The announcement was released after the end of regular trading in Frankfurt. SolarWorld declined 1 percent to 1.60 euros at the close.