Conergy hopes to sell Mounting Systems by end Oct

Oct 1, 2013 - Insolvent German solar company Conergy AG (ETR:CGYK) said on Monday it expects talks with potential investors in its production subsidiary Mounting Systemsto to result in a deal by the end of the month.

The troubled company has already received offers for its unit for mounting systems in Rangsdorf, near Berlin, from investors from Europe and the USA and will have negotiations with the most promising prospects in the coming weeks, Mounting Systems CEO, Stefan Spork, said.

The production facility will have to lay off 52 workers with the start of the insolvency proceedings on October 1 and continue operating with a reduced staff of 152 workers. Conergy had secured the wages and salaries of its employees from state insolvency payments by the end of September. Despite a stable order backlog, the company had to reduce its costs in order to continue manufacturing.

Conergy filed for insolvency in July and is currently undergoing restructuring. The company has already sold eight of its international subsidiaries to US financial investor Kawa Capital Management and is currently in talks for the sale of its solar module factory in Frankfurt, which employs 320.

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