SolarWorld reaches out to creditors
By Andy Giegerich
Sustainable Business Oregon editor
The deal aims to alleviate many of SolarWorld's recent fiscal issues.
SolarWorld AG said Tuesday morning it has reached a preliminary agreement with its major creditors that could help it restructure its financial liabilities.
The agreement could slash SolarWorld’s debts by 60 percent by addressing about 80 percent of the company’s “creditors of assignable loans.” Bloomberg reported that SolarWorld is proposing a capital reduction of about 95 percent.
“In all material respects, the creditors of (the company’s two primary bonds) will receive treatment equal to that of the other non-secured financial creditors of the company,” SolarWorld officials wrote in a note to shareholders.
The company is also setting up creditor meetings with bondholders in hopes of reaching an agreement.
SolarWorld also reported yesterday its 2012 net loss grew to $624 million in U.S. dollars. Bloomberg’s staff noted that the company has 150 million euros of bonds maturing in 2016 and 400 million euros worth due in 2017.
The company revealed earlier this month it expects big losses during its next reporting quarter.
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