Electronics Production | August 04, 2009
Centrosolar pulls out of former Qimonda-JV Itarion
The negotiations on the continuation of the joint venture Itarion, established by Centrosolar Group AG, Munich, in conjunction with Qimonda AG, with the aim of manufacturing solar cells in Portugal, were halted on July 31, 2009.
Following the bankruptcy of Qimonda in January 2009, Centrosolar had entered into negotiations with a Portuguese industrial consortium with a view to the latter taking on Qimonda's interest in the joint venture. However, the latest solution discussed with the consortium entailed excessive risks and necessitated a much greater involvement of Centrosolar in the operating side of the business than in the concept originally agreed, with the result that no workable, viable concept could be found. Centrosolar is consequently obliged to make a liquidity-neutral write-off of the carrying amount of the investment in Itarion of EUR 10.1 million. Centrosolar in addition bears joint and several liability with the now bankrupt Qimonda AG for the net financial debt of Itarion, which amounts to EUR 16.5 million. A timetable for the repayment of the outstanding amount by mid-2011 has been agreed with the banks. From now on, Centrosolar will concentrate entirely on its core business of systems integration and the manufacture and sale of solar key components; on the strength of its recent healthy business performance it expects to post revenue for 2009 on a par with the previous year.