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Sunday, August 26, 2012

South Korea's Hanwha Signs Deal To Buy Insolvent Q-Cells

Per www.globalinsolvency.com:

Mon., August 27, 2012
 
South Korea's Hanwha Corp intends to buy solar Group Q-Cells, the insolvent German group said in a statement on Sunday, Reuters reported. Hanwha and Q-Cells' insolvency administrator Henning Schorisch had signed a contract, which needs to be approved by a creditors' meeting to be held on Aug. 29. Q-Cells, once the world's largest maker of solar cells, said Hanwha would take on liabilities, which amount to "the low hundreds of millions." In addition it would pay a "medium double-digit million-euro range" in cash," Q-cells said in the statement. The deal was excluding convertible bonds issued and guaranteed by Q-Cells. Q-Cells, which employs about 2,300 people, filed for insolvency in April and became the most prominent victim so far in an industry shakeout that has already claimed some of its rivals in Germany and the United States, including Solon, Solar Millennium and Solyndra. After going public in 2005, Q-Cells went on to become the world's largest maker of solar cells but lost that title in 2009, suffering from low-cost competition from Asia, pricing pressure and excess supply of solar cells in the market. Shares in the company, headquartered in Bitterfeld-Wolfen, once the hub of the former East Germany's ailing chemicals industry, were worth almost 84 euros ($110) at their peak in late 2007. The stock closed at 0.17 euro on Friday, up 32.8 percent on the day, as traders pointed to market chatter of a final deal with Hanwha. Hanwha in late June said it was conducting due diligence on Q-Cells.

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