FRANKFURT May 10 Germany's Solarworld
has filed for insolvency proceedings, defeated by
Chinese competition which has flooded the market with cheap
"Due to the ongoing price erosion and the development of the
business, the company no longer has a positive going concern
prognosis, is therefore over-indebted and thus obliged to file
for insolvency proceedings," Solarworld said in a statement on
It added that it was assessing if affiliated companies would
also have to file for insolvency.
Earlier this year Solarworld announced staff cuts after
reporting increased losses.
It was one of the few German solar power equipment companies
to survive a severe downturn at the turn of the decade caused by
a glut in production that led prices to fall rapidly.
SolarWorld, once Germany's largest solar panel maker by
sales, was forced to restructure after generous government
subsidies for generating solar power led to a glut in component
supplies, throwing a large number of local companies including
Q-Cells, Conergy and Solon into insolvency.
(Reporting by Arno Schuetze; Editing by Greg Mahlich)