Solarworld bondholder reps recommend approval of rescue plan

Aug 2, 2013 - The representatives for the bondholders of German solar products maker SolarWorld (ETR:SWV) have recommended to their clients to accept the intended debt reduction in a move to avoid insolvency.

Despite that the plan includes the waiving of 55% of the claims, corporate consultant Frank Guenther and lawyer Alexander Elsmann say that it offers mostly benefits and chances for the company. Still, they pointed out in a telephone conference from yesterday that the revamp hides risks but it is better than insolvency.

Good reasons to accept the plan, Guenther and Elsmann said, are the secured cash payment for the bondholders and the planned entry of partner Qatar Solar. Risks in connection with the plan they said are the volatile solar market and the fact that the investment of Qatar Solar in Solarworld is still not secured in a contract.

Guenther and Elsmann said also they are certain that the next creditors' meeting will be attended by at least the necessary minimum of 25% of the bondholders.

Solarworld is suffering under the weight of EUR 900 million (USD 1.19bn) debts, and it hopes that its creditors would approve a rescue plan involving severe cost and capital cuts.

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