German Sovello wants to find new investor by end-Aug 2012

(SeeNews) – Jul 31, 2012 - Insolvent German solar firm Sovello is aiming to find a new investor and thus rescue its business by the end of August 2012.

The negotiations with a potential investor from Asia are expected to take several more weeks, the company said today.

Sovello CEO Reiner Beutel said the talks in Asia showed there is big interest in the firm's integrated production process, in which silicon use and energy consumption are each reduced by 50%. The negotiation partners have a clear idea of the structure of the transaction, the process is more extensive than previously planned and therefore it will require a few weeks to be successfully completed, the CEO said.

Beutel said the refusal of the state to get involved in the process was a hard blow for Sovello. He said the continuation of the company's operations was the most economic solution for the creditors.

Yesterday, Saxony-Anhalt announced it will not provide state aid for the creation of a transition company for half of Sovello's staff.

The company has decided to finance the transition company itself, but will have to cut back production and reduce work shifts further.

After it filed for insolvency, Sovello announced it will be able to keep only half of its workforce of around 1,000, while the other half must be transferred to a transition company. This company is to employ 475 workers for another three months and requires funding of EUR 3 million (USD 3.69m).

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