Q.CELLS SE: Business Operations Stabilized

Production at the insolvent solar cell manufacturer Q.CELLS SE has started back up. As the company’s preliminary insolvency administrator, Henning Schorisch, announced, its business operations will continue during the preliminary insolvency proceedings. The investor process will take place at the same time.

Just after the company filed for preliminary insolvency, Schorisch had contacted suppliers and customers so that production could quickly be resumed at the start of the spring, which is incredibly important for the solar industry. This was all the more vital as the storage facilities were empty at the time of the filing.

The production of mono and multi solar cells is already running at half-utilization. Q.CELLS solar modules are even being produced in three shifts and will soon be expanded to the full four-shift operation seven days a week. In order to facilitate this, employees from cell production will switch to module production. The company is also looking into the possibility of hiring employees from the affiliate company Solibro in Q.CELLS’ cell production in order to avoid bottlenecks.

“The workforce at Q.CELLS is understandably unsettled by the insolvency proceeding, but is still highly motivated,” said Schorisch. “Everyone is pulling together.”

Schorisch intends to restructure Q.CELLS by finding one or more investors for the company. The Frankfurt-based office of the M&A consultancy Deloitte has been commissioned with the task of looking for investors. The consultancy will identify potential investors from around the world and reach out to them during the next few weeks.

“Our goal is to save as much of Q.CELLS and as many of the jobs as possible,” Schorisch said. “The next few weeks will show the extent of investors’ interest.” Since the announcement of the filing for preliminary insolvency, a number of interested parties have already expressed their interest to the preliminary insolvency administrator. These include both domestic and foreign as well as financial and strategic investors. At the same time, alternative solutions for a restructuring are being pursued also in consideration of creditors.

In order to improve the starting point for the restructuring during the preliminary insolvency proceeding. Schorisch will carry out measures aimed at improving efficiency and enhancing technology. In addition, sales and marketing is taking an aggressive approach on the market. Thus, Q.CELLS is to benefit from the start of the solar construction season despite the insolvency proceeding.

Q.CELLS SE filed for preliminary insolvency on April 3, 2012 after the restructuring targeted in the months prior were blocked by a court ruling. The solar industry in Germany is under a considerable and continuously growing price pressure, especially from Asian competitors. As a result, a number of companies in the sector have filed for insolvency in the last few months.