On October 24th, 2012 Centrotherm Photovoltaics AG's (Blaubeuren, Germany) management board passed a resolution to make changes to the insolvency plan which it has submitted to the insolvency court in Ulm, Germany.

These changes will require the approval of the creditors and confirmation by the court. Under the draft insolvency plan, Centrotherm is to be continued along with its stock market listing, and the company's capital structure will be reorganized so that unsecured creditors' receivables are transferred to the company in exchange for stock.

"This is intended to create a settlement of interests between the shareholders and the company in the company's continued existence and capital market access, and of the creditors' interest in the best possible satisfaction of their receivables," explains Centrotherm in a press statement.

Plan involves 5:1 reverse stock split

The company's EUR 21.2 million (USD 27.4 million) in share capital will be reduced, following the withdrawal of two shares, to EUR 4.23 million (USD 5.47 million), by consolidating the remaining shares in a 5:1 reverse stock split.

The share capital will then be returned to EUR 21.2 million (USD 27.4 million) through a capital increase against non-cash capital contributions.

Under the plan, the company's unsecured creditors will then assign 70% of their unconditional and unrestricted receivables to an administration company, which will subscribe for the total EUR 16.9 million (USD 21.9 million) in new shares as part of a debt-for-equity exchange.

Payment to be deferred on receivables

Payment on the remaining 30% of the receivables will be deferred until the end of 2015, with no interest accrued.

The administration company will hold 80% of the company's share capital and shares after the restructuring. Creditors will not participate directly in this company as shareholders.

Centrotherm expects to report a net loss of EUR 24 million (USD 31 million) in 2013, but to return to positive margins and profitability in 2014.

2012-10-26 | Courtesy: Centrotherm | solarserver.com © Heindl Server GmbH

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