SolarWorld Reports Heavy Hit in 2012

SolarWorld plant in Freiburg, Germany.

SolarServer (www.solarserver.com) reported yesterday that SolarWorld AG of Bonn, Germany release selected results for 2012 showing a 42% decline in revenues to EUR 606 million ($792 million), an 81% operating margin drop with a net loss of EUR 477 million ($623 million).

On the bright side, SolarWorld reached an agreement with creditor over basic financial restructuring in a plan intended to allow a 60% reduction in its non-current liabilities. The plan includes a combined capital reduction and capital increase with debt-to-equity swap. Still, the plan needs approval of all pertinent committees.

Bloomberg reports SolarWorld has EUR 150 million ($196 million) worth of bonds maturing in 2016 plus EUR 400 million ($523 million) worth of bonds maturing in 2017.

SolarWorld attributes 2012 losses to both a 40% decline in solar photovoltaic (PV) module prices and a decline in shipments. SolarWorld  (www.solarworld-gt.de/en) is Germany's largest PV panel maker.

LDK Solar Update

Some upbeat news for LDK Solar (www.ldksolar.com).

Fulai Investments Ltd. (British Virgin Islands) agreed to purchase $25.7 million of new shares in LDK Solar Company Ltd. (Xinyu City, China). Fulai will buy 25 million shares at $1.03 per share. This is Fulai's second purchase of LDK stock in three months, the first being an agreement to purchase $31.1 million in stock in January 2013.

LDK and Suntech are two major Chinese PV manufacturers facing  major financial problems this year with the latter entering bankruptcy.