* SolarWorld, creditors seek 'sustainable solution' -sources
* Filing for insolvency not part of considerations - sources
* Debt-equity swap under discussion - sources
FRANKFURT, April 18 SolarWorld and its
creditors are aiming to strike a deal on the restructuring of
the ailing Germany-based maker of solar panels within the next
2-3 weeks, two sources familiar with the talks said on Thursday.
"We are looking at a reasonable, sustainable solution that
would not require SolarWorld to file for insolvency," one of the
Creditors would cancel some debt and swap some loans for
equity, the sources said. Shareholders will likely be left with
significantly less than 10 percent of the equity, one of the
A third person familiar with the situation said that a
debt-equity swap was one of the possible options.
SolarWorld declined to comment. Houlihan Lokey, which is
advising SolarWorld, and Macquarie, advisor to the company's
creditors, both declined to comment as well.
SolarWorld, laden with 900 million euros ($1.2 billion) in
liabilities, is struggling with weak demand, industry
overcapacity and falling government subsidies.
The company, once Germany's biggest solar group, said on
Wednesday that its estimated 2012 loss amounted to half of its
nominal share capital and its equity capital was negative at
about 20 million to 50 million euros.
Plunging solar module prices and asset writedowns led to a
2012 loss of 520 million to 550 million euros, it said, adding
an ongoing audit of its books may "significantly modify" this
estimate, SolarWorld said on Wednesday.
Shares in the group were down more than 24 percent by 1122
SolarWorld's struggles follow debt restructurings at former
German solar heavyweights Conergy and Q-Cells
, the latter of which filed for insolvency last year.
SolarWorld has long campaigned for steps against alleged
price dumping in the solar industry and led European solar panel
manufacturers to take respective steps in the United States and
Europe, blaming Chinese peers of receiving state subsidies to
flood the EU with panels sold below cost and putting Europeans
out of business to corner the market.
($1 = 0.7668 euros)
(Reporting by Arno Schuetze, Alexander Huebner, Anneli Palmen)