Insolvent SolarWorld close to selling German factories

The preliminary insolvency administrator of SolarWorld AG (ETR:SWV) is in talks with a group of investors regarding the takeover of the factories in Freiberg and Arnstadt of the insolvent German photovoltaics (PV) manufacturer.

Negotiations have been ongoing since the weekend and Horst Piepenburg is more optimistic than not that a deal would be reached. According to a statement today, the investor group is expected to fund the business by the middle of August. The plans involve keeping 450 jobs, while a further 1,200 could be moved to a so-called employment and qualification company (BQG), or a transfer company.

SolarWorld said last week it would need to cut more jobs to continue operating after the period of insolvency benefit payments ends on August 1. The headcount has already been reduced to 1,850 from 2,200 at the time of the insolvency application in May. According to the previous statement, the various interested strategic investors examining the company would need up to four months to complete due diligence.

SolarWorld's US subsidiary, SolarWorld Americas Inc, meanwhile, continues to operate outside insolvency proceedings and has recently said it expects to get a double-digit-million-dollar cash infusion to stabilise its business.

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