Solarworld's dispute with creditors may endanger deal with Bosch - report
Nov 29, 2013 - The deal between German solar firm Solarworld AG (ETR:SWV) and industrial group Bosch for the acquisition of Bosch Solar may be at risk due to continuing legal disputes with creditors and shareholders, Frankfurter Allgemeine Zeitung said today.
The legal actions, taken by Solarworld's shareholders and bondholders against the company's restructuring plan, may drag on until February 2014 as only six out of 18 plaintiffs agreed on Thursday to sign a settlement.
The rescue plan, including a 95% capital reduction and a 55% debt cut, can be implemented after the legal dispute is settled.
Solarworld's CEO, Frank Asbeck, previously expected that the restructuring can be completed by mid-February, claiming that most bondholders had agreed to a settlement.
A company spokesman told FAZ, the failed agreement with creditors and shareholders does not put the restructuring of the company and the completion of the deal with Bosch Solar at risk.
However, there is no guarantee that the court will not launch main proceedings to hear the plaintiffs which may block the implementation of parts of Solarworld's financing plant, Frankfurter Allgemeine Zeitung said. In addition, the acquisition is still pending regulatory approvals.