REC’s subsidiary, a polysilicon giant, files for bankruptcy

Thread Content

REC’s subsidiary in the polysilicon sector files for bankruptcy, according to Polaris Solar PV Network. 2012-8-15 10:37:07 Keywords: polysilicon, bankruptcy, photovoltaic companies. Following the complete suspension of its wafer production activities in April, Norwegian company REC Wafer was forced to file for bankruptcy due to its parent company, the polysilicon giant REC, ceasing to provide it with the financial resources needed to operate. By the end of July, REC Wafer was said to have debts exceeding its assets by around 1.2 billion Norwegian krones (equivalent to $203 million). To avoid applying for bankruptcy protection, the REC parent company, which holds 100% of the shares, must provide the necessary funds for operations. Nevertheless, the company has decided it must take this path – Norwegian REC Wafer must file for bankruptcy. REC states that its wafer subsidiary is not a guarantor under the new bank loan agreement. However, it added that guarantees, loans, and compensation agreements would cost an additional 400 million Norwegian kroner. The bankruptcy of REC Wafer will not affect the operations of REC Solar or its REC Silicon subsidiaries.