Solon Files for Insolvency
- Published: Thursday, 22 December 2011 11:15
The rapid decline in prices has been a boon for solar installation and financing companies. Not so much for solar manufacturers, an industry in the throes of a painful consolidation. German-based Solon, which already closed its 60-megawatt solar panel factory in Tucson, Arizona, is the latest company to struggle with its finances.
Solon filed this week an application to restructure its loans for three of its subsidiaries through insolvency proceedings. For the past several months, Solon was engaged in what it described as “intensive efforts” to restructure its loan through talks with investors, the financing banks and the guarantors, the company said in a release. The negotiations to reach an amicable solution failed, forcing Solon to file for insolvency.
Solon joins a growing list of struggling solar panel manufacturers grappling with grappling with a particularly sticky challenge: sales are up in many cases, but prices are falling even faster with a consequent drag on profits.