Sunways AG

Insolvency administrator takes initial stock

Business news for the stock market

Konstanz/Germany (pta010/18.06.2014/11:45) - New investors for large parts of the business / More than 50 percent of the jobs kept / Brand taken over by Shunfeng Group

18 June 2014 - About six weeks after the start of insolvency proceedings for Sunways AG, Konstanz (SWW:GR, SWWG.DE, ISIN DE0007332207) and its wholly owned subsidiary, Sunways Production GmbH, Arnstadt, the insolvency administrator Dr. Thorsten Schleich takes initial stock. "We were faced with difficult conditions at the start," says Dr. Schleich of the law office of Schleich & Kollegen in Villingen-Schwenningen. "After the proceedings were opened, the employees only had a legal right to insolvency pay for a little more than one month. And a continuation of operations after proceedings had been opened was not possible given the financial state of the two companies," Dr. Schleich explains.

"That's why I'm happy that we have managed in a short space of time to find investors for a continuation solution in Konstanz as well as Arnstadt." Dr. Schleich is convinced there are thus long-term prospects in both cases. The business operations of Sunways Production GmbH in Arnstadt were acquired a few days ago by Bluecell GmbH. All the employees there will be able to keep their jobs.

The "sunways" brand, the solar inverter business and the business with building-integrated photovoltaics of Sunways AG had already been acquired before by an indirect subsidiary of Shunfeng Photovoltaic International Ltd. (1165:HK, 1165.HK). Around 50 percent of the employees engaged at the Konstanz site prior to the acquisition of the businesses were taken on by the buyer.

"We are pleased that Shunfeng's acquisition of Sunways has been completed," said Suntech CEO Eric Luo, who is charged with the responsibility to oversee the integration and operations of companies being acquired by Shunfeng. "This move allows Shunfeng to expand into the area of services and complete solutions. We realize that as grid parity approaches, the service and solution business is becoming more and more important so we are expanding in this segment."

"Similar to Suntech, which now has the strongest financial footing in the solar industry with nearly zero debt since its acquisition by Shunfeng, this deal will allow Sunways to continue to make R&D investments in their inverter business, Luo said. "It is our mission to become the largest integrated clean energy supplier globally - integrated not only in terms of manufacturing but also in terms of owning clean energy producing assets. We are creating the Shunfeng family of companies with capabilities in design, engineering, manufacturing, construction, finance, insurance, operation and maintenance, energy storage, solar products and applications."