Phoenix Solar, once one of Germany’s largest solar groups during the sector’s heyday, on Friday said it would file for insolvency next week after an unnamed U.S. customer demanded payments that exceed the group’s funds.
Following the drawdown of project-related letters of credit in the amount of approximately $8 million by a large customer of Phoenix Solar Inc. … the parent company Phoenix Solar AG is obligated to reimburse the issuing banks immediately under its existing financing agreements. Attempts by the company’s management to find a solution with the said U.S. customer and the company’s banking consortium in Germany have failed.
The news comes only months after larger peer SolarWorld filed for insolvency, overwhelmed by a renewed wave of cheap Chinese exports that was caused by reduced ambitions in China to expand solar power generation.
