Conergy, a German solar group, filed for bankruptcy. 800 jobs were at risk to be the newest casualties. The industry continued to be battered by overcapacity, sinking prices and trade conflict between Europe and China.
Conergy was once Europe's biggest solar corporation. It fought for months to acquire new investments and contracts with moneylenders. However, its efforts were not good enough that it already run out of money. This resulted to a district court's move to appoint a manager that would rescue the business.
Sources said the company was close to getting a contract from an Asian investor. This deal was supposed to make an investor take Eur261.5 million equivalent to US$338 million syndicated loan contract finalized by Conergy and 10 banks. It was also believed to pump 50 million of equity into the conglomerate.
Holger Fechner, analyst at NordLB bank, said, "This is a clear sign of how huge the crisis was and still is."
"In the last fifteen months, we have presented two concrete concepts on the investment by investors to our lenders," Conergy Chief Executive Officer Philip Comberg stated. "We very much regret that they repeatedly could not reach a reliable agreement on a timely implementation of the proposal."
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