asola Solarpower Uses Insolvency Plan Proceedings in Self-Administration for Restructure

Published on 31 Jan 2013
asola 

30.01.2013 - asola Solarpower GmbH, Erfurt, applied to Erfurt Local Court for the institution of insolvency plan proceedings in self-administration under the ESUG (law for further facilitation of the restructuring of businesses) in order to prepare and implement the restructuring of the company on 23.1.2013. The court has already ruled the stay of execution for the company. This gives the manufacturer 5 of crystalline PV modules time to draw up a restructuring plan that will orientate the company optimally to the more intense future challenges in the market as regards competition and remuneration policy. An administrator to be appointed by the court will monitor the restructuring of the company. The present business management remains fully capable of acting furthermore. The significant and biggest creditors financing the company help carry the reorganization in the insolvency procedure as well as the new strategic focus and will accompany this about the board of creditors actively. Business operations continue unchanged, allowing clients to continue to obtain asola premium modules in the usual quality. All receivables from accounts receivable trade newly commissioned by asola Solarpower will be paid regularly. Staff monthly salaries are assured through the insolvency substitute benefits of the Bundesagentur für Arbeit (Federal Labour Agency). The other two companies in the asola group, asola Quantum Solarpower AG and asola Automotive Solar Deutschland GmbH, are not affected by the insolvency proceedings.

The company is currently burdened inter alia by high restructuring costs with personnel and a few older, no longer up-to-date long-term contracts. In addition, the global market in photovoltaics is characterised by high excess capacities and is declining in perspective in Europe according to the view of the European Photovoltaic Industry Association (EPIA). Therefore, the management is currently drawing up a restructuring plan that takes these altered market conditions into account and restructures the company strategically, operationally and financially. The particular goal is to preserve as many jobs as possible, subject all supply contracts to precise inspection and safeguard the excellent customer relations, some extending over a number of years. Ultimately, asola Solarpower GmbH thereby also seeks to make entry interesting for investors. "asola Solarpower will emerge stronger from the proceedings. After restructuring, which had become urgently necessary, we will rapidly become highly competitive and profitable again in the premium segment, which distinguishes itself from the mass market through quality, efficiency and genuine product differentiation", says owner and managing director Reinhard Wecker. "Furthermore, with our knowhow and the adaptability of our production lines, we are already one of the leading addresses in Europe today in the field of special modules, e.g. for the architecturally particularly challenging facility integration."

Since March, 2012 the legislator has clearly improved the possibilities for the reorganization of viable businesses within the scope of the (temporary) insolvency procedure. One of the central elements is the strengthening of the so-called proceedings in self-administration. In this kind of procedure, the present management board remains fully capable of acting and can independently and in its own responsibility prepare and realize the reorganization during the whole procedure. The board is supervised by an administrator appointed by the court. Thus the special competence, the know-how as well as the network of the management board is further preserved; time delays and losses of information - occurring by handing over the business to a bankruptcy lawyer - are avoided. In addition, immediately after application the company receives the stay of execution, so that the reorganization cannot be endangered by single creditors.

 

ENF Profiles For Companies Mentioned in This Article

asola (Solar Panels): http://www.enfsolar.com/directory/panel/4495
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