March 20, 2012 / 7:47 PM / 6 years ago

UPDATE 1-Solarhybrid says to file for insolvency

* Says will file for insolvency on Tuesday

* Cites “illiquidity” as reason

FRANKFURT, MARCH 20 - German solar project developer solarhybrid AG said on Tuesday it will open insolvency proceedings with a German court.

It said it was filing for insolvency “due to illiquidity” with the court in Arnsberg. No other details were given in a statement issued late on Tuesday.

In December, Solar Millennium AG filed for insolvency after running out of cash before it was able to finalize deals to sell large projects in the United States and Spain.

German solar module marker Solon SE also filed for insolvency in December.

Solar companies in Europe and the United States have been hit hard by a toxic mix of oversupply, falling prices, low-cost Asian competition and lower government subsidies on which the industry still depends.

This has already triggered a wave of bankruptcies in the United States, most notably panel maker Solyndra LLC and Evergreen Solar Inc.

On Feb. 6, solarhybrid said its supervisory board and the interim insolvency administrator of Solar Millenium had reached an agreement under which solarhybrid would acquire the 2.25 gigawatts U.S. project pipeline from Solar Millenium.

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