Meyer Burger secures $40 mln in bridge loan after key client's exit

The Swiss solar panel manufacturer Meyer Burger announced on Friday that it had secured nearly 40 million dollars in bridge financing for its business, after its biggest customer, DESRI said it would be pulling out last month.

Meyer Burger stated in November that its future was uncertain following the announcement of the DESRI's exit, which followed a number of other setbacks.

Meyer Burger expects to draw down an initial tranche worth $19.7 Million from the new bridge loans facility. The remaining tranches will be drawn down if it meets additional milestones.

The company has said that it is in talks with DESRI about the terms of a brand new agreement. A successful deal will result in a further drawdown of bridge financing.

The firm stated that the loan would provide Meyer Burger with sufficient liquidity to come to definitive agreements with a group of bondholders ad hoc and DESRI in order to find a long-term restructuring solution.

The final agreement should be reached by December.

Meyer Burger Executive Chair Franz Richter stated that "with this first, but major step in financing we begin re-powering our company to complete the ramp-up to our full production capacity of 1.4GW per year."

Richter stated that the company is committed to strengthening their relationship with DESRI. He said that if the company was successful in this endeavor, it would demonstrate the potential of the U.S. marketplace. (Writing Miranda Murray Editing Dave Graham)

(source: Reuters)