Centrotherm completes debt-for-equity restructuring to avert insolvency

Aug 9, 2013 - German solar equipment maker Centrotherm Photovoltaics (ETR:CTN) said on Thursday it completed its restructuring through a debt-for-equity recapitalization, approved in May in order to take the company out of insolvency..

Centrotherm reduced its indebtedness by converting unsecured creditors' claims into shares. The creditors assigned 70% of their claims to administrator Sol Futura Verwaltungsgesellschafts, which converted them into shares following a capital reduction and increase, thus became the company's biggest shareholder with an 80% stake.

The company's share capital was reduced from EUR 21.1 million (USD 28.3m) to EUR 4.2 million, with shareholders taking write-downs in a 5:1 ratio. Centrotherm then increased its share capital to EUR 21.1 million by issuing 16.9 million new ordinary bearer shares for Sol Futura Verwaltungsgesellschaft in return for the debt package.

As a result of the share capital reduction, the previous majority shareholder TCH GmbH reduced its stake to 10% from 50%. The remaining 10% of the shares comprise the free float. The new bearer shares, held by the previous shareholders, are traded on the regulated market of the Frankfurt Stock Exchange and on other regional stock exchanges such as Stuttgart.

The administrator has to sell the shares as best possible and satisfy the insolvency creditors' claims by the end of 2015 .

(EUR 1.0 = USD 1.34)

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