FRANKFURT (Reuters) - Holders of SolarWorld’s SWVG.DE second convertible bond have agreed to a wide-ranging restructuring of the German solar group, the second of three approvals it needs to overhaul its debt.
SolarWorld on Tuesday said holders of SolarWorld’s 400 million euro ($530 million) convertible bond agreed to the plan, which entails a haircut of 55 percent on SolarWorld’s debt.
On Monday, holders of SolarWorld’s first convertible bond approved the deal, under which Qatar Solar will become a 29-percent shareholder in the group, while existing shareholders will end up with 5 percent.
SolarWorld, once Germany’s top solar group by revenue, now needs the approval of shareholders at a meeting on August 7.
The solar industry is wrestling with fierce competition, falling government subsidies for solar energy and oversupply, a combination that has already undermined large players such as U.S.-based Solyndra and Germany’s Solon (SOOG.MU).
SolarWorld, long immune to the sector’s crisis, in January warned creditors of a debt restructuring.
Reporting by Christoph Steitz, editing by Louise Heavens