Centrotherm predicts turnaround for 2014 on restructuring, PV tech market growth

Oct 25, 2012 - Insolvent German solar company Centrotherm Photovoltaics AG (ETR:CTN) yesterday said it expects to return to a net profit of EUR 22 million (USD 28.6m) in 2014 based on the successful completion of its restructuring and the growth in the market for photovoltaic (PV) technology.

The figure is expected to rise to EUR 23 million in 2015. In both 2014 and 2015 Centrotherm is to achieve earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 37 million.

For 2013 the group predicted a net loss of EUR 24 million and a loss before interest, tax, depreciation and amortisation (LBITDA) of EUR 18 million.

As part of Centrotherm’s draft insolvency plan, which has to be approved by its creditors and by the Ulm Insolvency Court, the company is to remain listed on the stock exchange but its capital structure is to be reorganised so that the receivables of unsecured creditors are transferred to the group in exchange for stock.

Centrotherm’s current share capital of EUR 21.2 billion is to be reduced by EUR 16.9 billion to EUR 4.2 billion via a capital write-down at a ratio of 5:1. Directly afterwards it is to be raised to its present value via a capital hike against non-cash capital contributions.

Therefore some 70% of the unconditional and unrestricted receivables of the creditors will be transferred to an administration company, which is to subscribe for all new shares issued in the capital increase. The remaining 30% are to be paid at end-2015 and will bear no interest rate.

The creditors will not be shareholders but will be able to participate indirectly in Centrotherm’s profitability and value enhancement.

(EUR 1.0 = USD 1.299)

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