Reimbursement claims lead to illiquidity of Phoenix Solar
Photo by: Phoenix Solar (www.phoenixsolar-group.com).
Photovoltaic (PV) system integrator Phoenix Solar AG (ETR:PS4) on Friday announced plans to enter insolvency proceedings next week after a large customer of its US unit sought certain payments that go beyond its financial resources.
The Germany-based company said it will submit the relevant filing to a Munich court. The move became necessary after the drawdown of project-related letters of credit totalling USD 8 million (EUR 6.8m) by the said customer, bringing reimbursement claims from the issuing banks. Those claims exceed the company’s financial capabilities and have forced the executive board of the parent company to file for insolency.
Phoenix Solar noted that its efforts to find a solution with the US customer and the group’s lenders in Germany have not been successful.
Last month, the PV group saw its consolidated net loss attributable to shareholders widen to EUR 12.4 million (USD 14.6m) in the first nine months of 2017 from EUR 3.3 million a year back, but said it expects higher revenues and improved earnings in 2018.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.