Solarworld's CEO to inject double-digit million sum into firm - report

May 31, 2013 - Frank Asbeck, founder and CEO of German Solarworld AG (ETR:SWV), intends to pour a sum in the double-digit million euro range in order to salvage the company from bankruptcy, daily Handelsblatt reported Thursday citing Asbeck as saying.

In order to survive, Solarworld has to reduce its debts by 60% to EUR 350 million (USD 454.7m) and plans to do this via a debt-to-equity swap.

Thus, the shareholding of Asbeck will drop to 1.4% from the current 28%. However, he plans to "significantly" boost his stake and financial sources consider it will exceed 20% again.

The CEO added he is in talks with joint venture partner Qatar Solar Technologies (QSTec), which has interest in becoming a major investor in Solarworld.

The German solar firm faced financial difficulties because of the cheap imports of solar modules from China. Many European and US solar companies have already been pushed to insolvency by this factor and the remaining players fight for anti-dumping import duties on this group of Chinese products.

(EUR 1 = USD 1.299)

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