Solon's stock loses almost 60% after insolvency filing

Dec 14, 2011 - The shares of German solar technology firm Solon SE (ETR:SOO1) dropped by 57.5% to EUR 0.395 at 1502 CET on the Xetra platform, following the company's announcement that it had filed for insolvency.

The news about Solon's insolvency also burdened the stocks of other sector companies and experts expect further insolvencies in the solar industry, several German media said.

Q-Cells' (ETR:QCE) stock lost 5.56% to EUR 0.611 at 1508 CET, while the shares of Conergy AG (ETR:CGY) fell by 1.04% to EUR 0.285 at 1452 CET.

According to estimates by the Berlin University of Applied Sciences (HTW), the global solar energy sector will face a significant consolidation as capacities currently exceed demand by around two-thirds, while Chinese sector players are putting pressure on prices.

Solon announced on Tuesday it had filed for insolvency as it failed to carry out a financial restructuring. The company faced a EUR-208.3-million (USD 271.5m) net loss in the first nine months of 2011, a deep slide from a loss of EUR 17.4 million a year earlier due to a major decline in prices and one-time effects from operational and financial restructuring.

(EUR 1.0 = USD 1.303)

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