Solarwatt Creditors Approve Restructuring Deal


Germany-based crystalline solar module manufacturer Solarwatt AG says its creditors have voted in favor of a reorganization plan put forth by the company and restructuring experts from Salans LLP.

Following the vote, the local district court in Dresden officially confirmed the reorganization plan.

Solarwatt has been undergoing insolvency proceedings since June 13, and the company says that now that it has earned creditors' approval, the largest barrier to the restructuring has been overcome.

The reorganization plan includes substantial restructuring contributions from all Solarwatt creditors. Unsubordinated, unsecured creditors in the insolvency, especially suppliers and bond holders of Solarwatt AG, will receive 16% of their registered and verified outstanding claims just four weeks after the plan takes legal effect.

In February 2015, the company may be able to issue a second payment totaling up to 1.5 million euros, to be divided among all entitled unsubordinated creditors in the insolvency through a reversal of accruals that would then be possible, provided that the accruals in question can be reversed as of Dec. 31, 2014.

Entrepreneur Stefan Quandt will become the new anchor investor of Solarwatt AG. Once the approved plan takes legal effect, Quandt, in his role as the new anchor investor, will support the company as it shifts its focus toward system solutions. The share capital of the company that will have been reduced to zero will then be raised up to a total of 5 million euros through a capital increase.

Following the capital increase, Quandt will hold 94% of the company's capital via his holding company AQTON SE. Furthermore, Quandt will also issue a shareholder loan in the amount of 5 million euros. Quandt has been assisted in this business transaction by investment bank Freitag & Co.

"Before the year is out, we will be launching new products in the area of system solutions," notes Solarwatt CEO Detlef Neuhaus." We still have big plans, and after the approval of our reorganization plan today, we are more convinced than ever that we can make a valuable contribution to the shift toward renewable energy sources and to upholding Germany's place as a leader in technology."

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