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Sunways AG: banks pull the plug on credit line

Against the background of the struggles of the PV industry, another German company hits the buffers, as banks exercise their "extraordinary termination rights" on Sunway's credit facilities.

According to a Sunways statement, the Management Board of the company is continuing to negotiate with banks on the repayment of the loan amounts drawn down at the time of the termination - to effectively keep the company in business.

At the end of last year, Sunways cut 40% of its 265 strong workforce and said it would focus on solar cells for specialist applications, like BIPV, and stop production of solar cells for standard modules "until further notice." And parent company LDK Solar has recorded a Q4 2012 net loss totaling over $0.5 billion; up from the $95.9 million loss seen in the previous quarter.

According to research by SPV, the top PV manufacturers have been losing considerable amounts of money: Top ten manufacturers shipped 58% of total shipments in 2012, but at the same time lost a combined US$2.1-billion last year.


 


 

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