Solar Millennium files for insolvency

FRANKFURT Wed Dec 21, 2011 9:41am EST

FRANKFURT (Reuters) - Solar Millennium became the second German solar company to file for insolvency in December, following module maker Solon, as the company could not find partners for large projects in the United States and Spain.

Before shares in the company were suspended on Wednesday, they had lost 9.3 percent, and the news also weighed on other solar stocks, including SolarWorld and Q-Cells, which gave up earlier gains and turned negative.

Solar Millennium said it had been in advanced negotiations about the sale of its U.S. pipeline since September.

"A binding confirmation on the amount and time of the cash flows could not be obtained until now. In addition, intensive negotiations with investors on the entrance into the project Ibersol (in Spain) could not be finalized," the company said.

The company, which is not listed in any of the major German stock indices, has a market capitalization of about 14 million euros ($18.4 million). ($1 = 0.7628 euros)

(Reporting by Christoph Steitz; Editing by Helen Massy-Beresford)

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