Meyer Burger loses its main customer. The renewable energy investment company DE Shaw Renewable Investments (Desri) has terminated with immediate effect the framework agreement which linked it to the troubled photovoltaic specialist.
The company from Gwatt, near Thun, is analyzing the letter and the situation, it said in a brief press release released on Friday. “Regardless of the validity of such a termination, restructuring efforts will likely be affected,” believes Meyer Burger. If the latter fails, the sustainability of the company would be threatened. More information will be provided in due course, we can still read.
The share was suspended from trading on the Swiss Stock Exchange between 10:00 a.m. and 12:30 p.m., although it had already fallen by almost 5% in the morning. Around 2:00 p.m., the stock collapsed from 58 to 49 cents.
At the beginning of November, during the presentation of its mid-term report, Meyer Burger said it hoped to be able to bounce back by 2026, thanks to the launch of its activities in the United States. Management was banking on its Goodyear site, in Arizona, respectively the commissioning of the second production line planned for the end of the year, hoping to generate an annual turnover of between 350 and 400 million francs by 2026 and an Ebitda of around 70 million.
Funding gap
However, on the condition of being able to refinance, the company warned. The commissioning of these projects across the Atlantic, coupled with the abandonment of activities on the American site of Colorado Springs which implies the loss of value of “considerable” investments, have in fact led to a financing gap of several millions and have weighed heavily on the accounts. From January to June, Meyer Burger widened its loss, reaching 317.3 million, compared to 64.8 million in the first half of 2023.
The board of directors is holding negotiations with a group of holders of convertible bonds maturing in 2027 and 2029. These creditors have accepted the principle of making fresh capital available.
From then on, everything rests on the success of the restructuring plan. Unveiled in mid-September, it involves the elimination of some 200 jobs out of 1,050 and was accompanied by the departure with immediate effect of general manager Gunter Erfurt, architect of the reconversion of Meyer Burger into a producer of photovoltaic cells. Chief financial officer Markus Nikles was also thanked. Chairman of the Board of Directors Franz Richter has taken over the group.
ats/ther
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