German photovoltaics (PV) maker SolarWorld announced on Wednesday that it found itself obliged to file for insolvency proceedings and will take that step immediately.
It further noted that because of “ongoing price erosion”, it no longer has a positive going concern prognosis. So is, therefore, over-indebted and thus obliged to file for insolvency proceedings.
The company is conducting an internal review if its affiliated firms should do the same.
Two weeks ago, the company reported its preliminary results for the first quarter of 2017, including a widened loss before interest and tax of EUR 28 million (USD 30.4m) and revenues of EUR 186 million.
It said at the time that the global price erosion since the middle of last year had led to a nearly 13% year-on-year decrease in consolidated revenue.
In February, SolarWorld presented a plan to “successfully compete in a fast-changing market environment” and reach 2 GW of annual shipments. That plan envisages 400 job cuts by 2019.
SolarWorld, once Germany’s largest solar panel maker by sales, was forced to restructure after generous government subsidies for generating solar power led to a glut in component supplies, throwing a large number of local companies including Q-Cells, Conergy and Solon into insolvency.