05 July 2013 15:13 [Source: ICIS news]
LONDON (ICIS)--German solar panels producer Conergy plans to file for insolvency after failing to agree with lenders on a concept for the firm’s future, it said on Friday.
Conergy’s insolvency adds to a string of insolvencies in Germany’s solar industry, where firms have been hit by cuts in government subsidies, overcapacities and soaring imports from China.
Conergy said that the insolvency will affect Conergy AG, Conergy Germany GmbH, and two manufacturing subsidiaries in Germany. Impacts on Conergy’s units outside Germany "cannot yet be foreseen", it added.
"In the last 15 months, we have presented two concrete concepts on the investment by investors to our lenders," said Conergy CEO Philip Comberg.
"We very much regret that [lenders] repeatedly could not reach a reliable agreement on a timely implementation of the proposal," Comberg said.
Conergy said that following the filing, a court in Hamburg would appoint a preliminary insolvency administrator who would "decide promptly whether and how the company can continue its manufacturing and business operations."
Conergy's workers are expected to receive government-funded "insolvency wages" for the next three months. The company employs about 1,200 workers, according to information on its website.
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