A court in Germany has approved the insolvency plan of centrotherm photovoltaics AG and terminated insolvency proceedings as of May 31. centrotherm says the plan's approval will compensate creditors with shares and save the jobs of all of its current workforce, representing approximately 900 jobs.
In January, the company said it had passed a ‘decisive hurdle’ for its reorganization and recapitalization after an insolvency plan was approved by its creditors and shareholders. centrotherm says the court decision means it is ‘a fully independent and reorganized company again’ that can implement changes needed to succeed in a difficult market.
‘We have done our reorganization homework in a difficult market environment, and we are a strengthened and reliable partner for customers and suppliers,’ the company said in a statement.
According to the plan, company shares are to be consolidated in a five-to-one ratio and then recapitalized in a debt-for-equity swap. As a result, the company's creditors will hold 80% of the shares of centrotherm, and former shareholders will retain the remaining 20%.