Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Q-Cells To File For Bankruptcy On Tuesday; Shares Plunge

4/2/2012 10:42 AM ET

German solar cells maker Q-Cells SE (QCLSF.PK) confirmed Monday that it will file for insolvency proceedings on Tuesday at the competent Insolvency Court in Dessau. The move follows the final ruling of the Frankfurt Higher Regional Court in the Pfleiderer AG case a week ago that has prevented it to go ahead with its existing debt restructuring plan.

Earlier, Bitterfeld-Wolfen-based Q-Cells had reached an agreement with major bondholders on a restructuring plan to swap debt for equity, and additionally, reached agreements with the involved authorities in Germany and Malaysia. The bonds were issued by Q-Cells International Finance B.V. on the basis of the 2009 German Bond Law.

"Following an intensive review of alternative concepts for the implementation of the financial restructuring, the executive board has reached the conclusion that a going concern of the company cannot be restored on a sufficiently secure legal basis," the company said in a statement.

Following the news, Q-Cells shares tumbled 42 percent in Monday's regular trading session on Frankfurt's Xetra stock exchange to its lowest price on record of 0.13 euros. QCLSF.PK is also trading at $0.20, down $0.12 or 37.50% on a volume of 5,300 shares.

The company has been hit plunging prices due to over supply of solar panels and declining government subsidies across Europe, creating turbulence in the global solar market.

Q-Cells, once the world's largest maker of solar cells, now joins peers such as Solar Millennium and Solarhybrid, both of which filed for insolvency recently, as well as Evergreen Solar, SpectraWatt and Solyndra, all these three from the U.S.

Q-Cells noted that it will now work together with the preliminary insolvency administrator to secure the continuity of the company within the insolvency proceedings.

Earlier, the final ruling saw the company review alternatives for implementation of the financial restructuring plan, and the company's Executive Board concluded that it sees no going concern for the company as restoration is not possible on a sufficiently secure legal basis. The company then decided that filing for insolvency proceedings is legally necessary.

Q-Cells reported last week a net loss of 845.8 million euros in fiscal 2011, compared to prior year's profit of 18.9 million euros due to the severe-than-expected 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
Starbucks Corp. said Thursday after the markets closed that its second quarter profit rose 9.4% from last year, helped by higher revenue. The company's quarterly earnings per share came in line with analysts' expectations, but its quarterly revenue fell short of analysts' forecast. The world's largest specialty coffee retailer also raised its full year earnings outlook. Software giant Microsoft Corp. said Thursday after the markets closed that its third quarter profit fell 6.6% from last year, when results were boosted by special upgrade offer revenues. However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue. Apple Inc. said Wednesday after the markets closed that its second quarter profit rose 7% from last year, as sales surged and margins improved amid strong sales of its iPhones. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a slightly downbeat revenue forecast for the current quarter.
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.