Vertically integrated solar company REC ASA says it will no longer provide funding for REC Wafer Norway AS. REC Wafer Norway will thus file for bankruptcy.
During 2011 and 2012, REC Wafer Norway's production sites in Glomfjord and Heroya, Norway, were shut down. As of the end of July 2012, the company's estimated carrying value of liabilities exceeded the estimated value of assets by about NOK 1.2 billion. Thus a solvent winding-up of the company would be dependent on continued funding from REC ASA, owner of 100% of the shares in REC Wafer Norway AS.
In connection with the bankruptcy of REC Wafer Norway, REC ASA will incur additional costs and further losses related to certain guarantees, loans and indemnity agreements currently estimated at approximately NOK 0.4 billion.
The bankruptcy of REC Wafer Norway AS will have no effect on REC Solar and REC Silicon, the companies note.