* Had 1 billion euros of debt at end September
* More jobs need to be cut - CEO Asbeck
* Shares plunge more than 25 percent
(Adds details, background, shares, analyst comment)
DUESSELDORF, Germany, Jan 25 SolarWorld
, once Germany's largest solar company, could face
lengthy and painful talks with creditors as it seeks to
restructure its debt, the chief executive said.
"Talks could take weeks and months," Frank Asbeck, dubbed
the "sun king" for his outgoing nature, said on Friday, adding
the company needed to cut more jobs in addition to the 250
announced last year to save costs.
He was speaking after SolarWorld warned late on Thursday it
would need to make a "serious adjustment" to its debt to remain
a viable company.
At the end of September 2012, the company had long-term debt
of 1.03 billion euros ($1.4 billion).
SolarWorld is the latest German solar manufacturer to
announce debt restructuring, following former heavyweights
Conergy and Q-Cells. The latter filed for
insolvency last year after months of negotiations with
Cuts in subsidies for solar energy, fierce competition from
cheaper Asian rivals and massive oversupply of components have
crushed Germany's solar industry - once the world's biggest
producer of solar cells that convert light into electricity.
"Significant uncertainties continue to dominate and are an
existential threat to SolarWorld," LBBW analyst Erkan Aycicek
said. Shares in the company fell more than 25 percent on Friday.
Bondholders holding securities worth 550 million euros
($735.57 million) in total and maturing in July 2016
and in January 2017 would be hit
most in the restructuring, the company said.
Lenders carrying SolarWorld's assignable bank loans on its
balance sheet would also likely be affected, it added.
Asbeck said the company's liquidity was 220-230 million
euros, largely unchanged from the end of September.
The company, which posted a 230 million euros net loss for
the first nine months of 2012, is scheduled to present full-year
results on March 21.
($1 = 0.7477 euros)
(Reporting by Anneli Palmen and Christoph Steitz; Editing by