SolarWorld targets August for shareholder OK of restructuring strategy

By Jim Witters

Wilmington, Del., May 22 - SolarWorld AG hopes to gain approval for its restructuring strategy from noteholders and shareholders at its August shareholder meeting, according to a company press release issued May 22.

The company also plans to begin "series manufacturing of new products, such as the new, robust and durable glas-glas modules and modules with higher efficiency," the release states.

"In the next three months, we want to close negotiations with all creditors constructively and thus be able to build a good future for SolarWorld," said CEO Dr.-Ing. E. h. Frank Asbeck in the news release.

The company expects the German and European solar markets to return to fair competition in the second half of the year, because the European Commission has announced plans to counteract Chinese dumping.

As previously reported, SolarWorld reached a mutual understanding in April with creditors representing about 80% of assignable loans on the key economic terms of a debt restructuring.

The preliminary agreement is subject to the approval of all committees.

A capital reduction of about 95% will be suggested to an extraordinary shareholders meeting in combination with a capital increase against contribution in kind.

As part of the capital increase, about 60% of SolarWorld's debt will be discharged through a debt-to-equity swap.

The company said two bond creditors will receive treatment equal to that of other non-secured financial creditors.

SolarWorld is a Bonn, Germany, solar panel maker.

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