Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Q-Cells Plunges On Bankruptcy Reports

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restructuring of the bonds issued by Q-Cells International Finance B.V. on the basis of the 2009 German Bond Law has been revoked.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.

Register
To receive FREE breaking news email alerts for Q-Cells SE and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Software giant Microsoft Corp. said Thursday after the markets closed that its first quarter profit fell 13% from last year, hurt mainly by integration and restructuring costs even as revenue surged 25% thanks to strong sales of its gadgets and cloud-based products. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue. After turning lower over the course of the previous session, stocks showed a substantial move back to the upside during trading on Thursday. The gains more than offset yesterday's loss, extending the recovery from the recent sell-off. Alaska Congressman Don Young, R-Ak., is once again making headlines with comments linking the state's high suicide rate to an increase in government assistance. Young told an audience at a senior center on Wednesday that the suicide problem didn't exist until there was "largesse" from the government.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.