Mercilessly Bankrupt: Meyer Burger's Desperate Battle for Survival in the USA
Meyer Burger grapples with U.S. existence amidst challenges
The Swiss solar power titan, Meyer Burger, is fighting tooth and nail for its existence in the United States after filing for creditor protection. The company's battle began with the filing of a Chapter 11 petition in the Delaware Insolvency Court, promising a complete corporate overhaul and swift restructuring. A spokesperson confirmed that this isn't the start of the company's end, but the means to a new beginning.
Meyer Burger's trouble started earlier this year when it entered preliminary insolvency proceedings for its German subsidiaries. The insolvency administrator revealed that the operational intensity has surged compared to pre-insolvency levels. Business is brisk, especially the solar module sales, leaving hope for a brighter future. With international consultancy firm KPMG on board to fetch investors worldwide, a lifeline may still be within reach.
However, the road ahead is a long one, and it wasn't always a smooth ride for Meyer Burger. The company had initially preferred to build its solar module production in the USA, with plans to export solar cells from Bitterfeld-Wolfen (Saxony-Anhalt) to the USA. Yet, the estimated liabilities in the USA range between $500 million and $1 billion, while the estimated assets are between $100 million and $500 million.
The Abyss Stares Back: A Major Customer Contract Sinks
Things took a turn for the worse when Meyer Burger halted its solar module production in the USA, resulting in the let go of 282 employees. The company has long been battered by cheap imports from China and the termination of a major contract with American D.E. Shaw Renewable Investments in November further aggravated the already dire situation.
After announcing the closure of its Freiberg site in Saxony, the company pinned its hopes on the USA, citing a lack of suitable state aid in Europe as the reason. But the plans were abandoned by August as the financial feasibility couldn't be assured. Instead, the company opted for a complete corporate overhaul to resume business.
Like a sinking ship, Meyer Burger's shares have slid on the Swiss stock exchange, from a whopping CHF 2.1 billion in 2011 to a meager CHF 24 million now, showcasing the extent of its financial collapse.
Growing Darkness: The Sky Overhead
Meyer Burger's predicament is a reflection of the dirty, competitive world of solar exports, dominated by cheap imports from China. The relentless competition in this arena has made it nearly impossible for European and American solar manufacturers to stay afloat. Meyer Burger has fallen victim to this vicious cycle despite its technological prowess and legacy in photovoltaic innovation.
If the company can find a buyer to purchase its assets under the U.S. bankruptcy court, there's a glimmer of hope for survival. The sale aims to retrieve money for creditors, but the process may face legal complications related to liens and past contracts, particularly those involving its German subsidiaries and D.E. Shaw Renewable Investments. With ongoing layoffs and insolvency proceedings across its major operational regions in the USA, Germany, and Switzerland, the once mighty Meyer Burger teeters on the brink of dissolution.
Sources: ntv.de, jki/dpa
- Gloomy Skies Ahead: Meyer Burger's Uphill Struggle
- Solar Energy
- Solar Industry
- USA
- Given the challenging solar industry environment, particularly with the dominance of cheap imports from China, Meyer Burger's employment policy must consider strategies for staying competitive, such as implementing cost-cutting measures and seeking potential collaborations within the industry.
- In the face of financial complications, Meyer Burger's community policy should prioritize transparency, ensuring that key stakeholders, including employees and creditors, are kept informed about the company's restructuring process and potential implications for employment, finance, and energy sectors.
