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Q-Cells Plunges On Bankruptcy Reports

4/2/2012 6:20 AM ET

Shares of Q-Cells SE (QCLSF.PK) declined around 33 percent on Frankfurt's Xetra after the German weekly magazine Manager Magazin reported that the German solar cells maker may file for insolvency this week.

Q-Cells shares are currently trading at 0.144 euros, down 0.068 euros.

In a March 30 statement, Bitterfeld-Wolfen -based Q-Cells had said its Board has analyzed the ruling of the Frankfurt Higher Regional Court of final Appeal in the Pleiderer AG case, and has concluded that an implementation of the restructuring of the bonds issued by Q-Cells International Finance B.V. on the basis of the 2009 German Bond Law has been revoked.

"The company is convinced that the ruling of the Frankfurt Higher Regional court is incorrect. However, potential lawsuits against Q-Cells' restructuring plan, which are to be expected, would be handled by the same court. There is no reason to assume that the Court would change its view on this matter. Against this background the Executive Board currently sees "no going concern" for the company," it said in a statement.

Q-Cells also said that it is reviewing alternatives for the implementation of the restructuring plan based on the latest developments. Earlier, it had come to an agreement with main bondholders on a restructuring plan of all bonds and additionally, reached agreements with the involved authorities in Germany and Malaysia.

Q-Cells last week had reported that it slipped to a net loss of 845.8 million euros in fiscal 2011 from prior year's profit of 18.9 million euros due to the unexpectedly difficult economic environment and certain extraordinary items. Sales plunged to 1.02 billion euros from prior year's 1.35 billion euros, but surpassed its target of more than 1 billion euros.

The company also had projected another loss making year in 2012, following intense competitive pressure and consolidation. However, after implementing the financial restructuring and medium-term business plan, the company is expected to return to a positive EBITDA for fiscal 2013.

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by RTT Staff Writer

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