Court terminates centrotherm's insolvency proceedings

These proceedings have been running since October 2012. "centrotherm is now a fully independent and reorganized company again that enjoys long-term stable financing and positive future prospects. We have done our reorganization homework in a difficult market environment, and we are a strengthened and reliable partner for customers and suppliers," commented the two Management Board members for the reorganization under the company's own administration, Tobias Hoefer and Jan von Schuckmann. As early as January 29, 2013, centrotherm had surmounted the decisive hurdle for the company's reorganization and recapitalization: creditors and shareholders approved with a large majority the insolvency plan that was presented at the discussion and coordination meeting convened by the Ulm District Court. The Ulm District Court approved this plan and, after all conditions were fulfilled, confirmed that the proceedings that commenced with the application that was submitted in July 2012 for protection under the German Act Relating to the Further Simplification of the Reorganization of Companies (ESUG) could now be terminated. The same applies for the subsidiaries centrotherm thermal solutions GmbH & Co. KG and centrotherm SiTec GmbH, for which independent proceedings are running. The market environment continues to prove very difficult, and no positive signs exist of improvement over the next months. Over the next few years, centrotherm will continue to invest double-digit amounts of millions of euros to develop new technologies and products in the photovoltaic and semiconductor areas, in order to secure and expand its technological position, the company writes in a statement. According to the plan, the capital structure will now be bolstered through converting unsecured creditors' receivables into the company's shares. To this end, creditors will assign 70 percent of their receivables that have been determined to be unconditional and without restriction to an administration company, thereby contributing them to centrotherm photovoltaics AG by way of a capital increase. The insolvency receivables that have been contributed will expire. In other words, centrotherm photovoltaics AG will be significantly deleveraged.