DFN: Solar Millennium AG went into insolvency (German equivalent of bankruptcy). Solar Hybrid AG was trying to buy Solar Millennium LLC, Solar Hybrid
went into insolvency. Lesson learned? Very challenging for thinly capitalized companies (sub 100M network worth) to pull off multi-billion dollar deals.
Reuters: UPDATE 1-Solarhybrid says to file for insolvency
Tue Mar 20, 2012 3:43pm EDT
FRANKFURT, MARCH 20 – German solar project developer solarhybrid AG said on Tuesday it will open insolvency proceedings with a German court.
It said it was filing for insolvency "due to illiquidity" with the court in Arnsberg. No other details were given in a statement issued late on Tuesday.
In December, Solar Millennium AG filed for insolvency after running out of cash before it was able to finalize deals to sell large projects in the United States and Spain.
German solar module marker Solon SE also filed for insolvency in December.
Solar companies in Europe and the United States have been hit hard by a toxic mix of oversupply, falling prices, low-cost Asian competition and lower government subsidies on which the industry still depends.
This has already triggered a wave of bankruptcies in the United States, most notably panel maker Solyndra LLC and Evergreen Solar Inc.
On Feb. 6, solarhybrid said its supervisory board and the interim insolvency administrator of Solar Millenium had reached an agreement under which solarhybrid would acquire the 2.25 gigawatts U.S. project pipeline from Solar Millenium.
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