German Gehrlicher Solar in talks with buyer for US subsidiary

Aug 5, 2013 - Insolvent German solar company Gehrlicher Solar is close to an agreement with investors for the sale of its US subsidiary Gehrlicher Solar America, the preliminary administrator said on Friday without disclosing the name of the potential buyer.

The company filed for bankruptcy protection in July 2013 but Gehrlicher Solar America and other subsidiaries remained unaffected. The move was prompted by the termination of a EUR 85 million (USD 113m) loan agreement with a bank syndicate as the company was not able to meet its covenants. The worsened profitability was blamed on the introduction of anti-dumping duties on Chinese solar products in European Union.

The search for investors has been successful and the negotiations are at an advanced stage, administrator Oliver Schartl pointed out, adding that the US unit was doing well and expected 2013 revenues of between USD 130 million and USD 150 million.

Schartl is considering a restructuring with the participation of new investors. Solar projects and project rights in Italy and Spain will also be placed on the market.

The company received a bank loan of "several million" in order to continue operation and proceed with its projects. In Romania alone, it is building five solar parks and expects to complete them on time, Schartl added.

(EUR 1.0 = USD 1.33)

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