Dec. 13 (Bloomberg) -- S.A.G. Solarstrom AG will file for insolvency after talks with creditors and investors to refinance the German developer of solar-power plants failed.
Solarstrom, including its sales division and the S.A.G. Technik unit, will make its application today, the Freiburg- based company said in a statement. A contract in Italy valued at a “mid-single-digit million-euro” sum and orders in Germany were delayed, draining liquidity, the company said.
The developer, which employs about 200 people, plans to conduct its own administration of the insolvency proceedings. “The company will work on a recovery plan over the next three months to this end,” it said. Trading in its shares was suspended in Frankfurt.
Solarstrom and its domestic peers have suffered from shrinking markets in Europe as competition from Chinese rivals and declining renewable-energy subsidies drag down solar-panel prices and squeeze profit margins. German companies including Conergy AG, Solar Millennium AG and Q-Cells have filed for protection from creditors.
--Editors: Amanda Jordan, John Viljoen