Meyer Burger talks to bondholders about injecting new capital
Meyer Burger, a Swiss solar panel manufacturer, said that it had entered into advanced negotiations on Thursday with a group holders of its convertible bond maturing in the years 2027 and 2029. The aim is to inject new capital into their business and restructure liabilities under some convertible bonds.
The company said that it expects to achieve annual sales between CHF 350 and CHF 400 millions and EBITDA of approximately CHF 70millions by 2026.
In its report for the first half of the year, which was published on Thursday, Meyer Burger stated that it would be able to continue as a "going concern" if its restructuring efforts and financing were completed in a very short time frame, as well as if its business plan is implemented.
The company plans to generate additional liquidity by selling solar modules and other assets from its existing inventory.
Meyer Burger's shares dropped more than 50% in August after it halted its plans to build an industrial plant in Colorado. It also delayed the release of its financial results, and announced that it was drafting a restructuring strategy.
In September, the company announced that its CEO and Chief Financial Officer were leaving and that they would be cutting around 200 jobs in its restructuring program.
Meyer Burger has previously stated that it suffered from market distortions caused by overcapacity of production in China, and trade restrictions imposed on the U.S. and India.
(source: Reuters)