Despite insolvency: operations at Meyer Burger to continue

Despite the insolvency applications, the German subsidiaries of solar manufacturer Meyer Burger are to continue their business operations for the time being. "It is our aim to continue both companies throughout the provisional proceedings," said Lucas Flöther, the provisional insolvency administrator of the technology site Meyer Burger (Germany) GmbH in Hohenstein-Ernstthal near Chemnitz. The sister company, the solar cell production Meyer Burger (Industries) GmbH with sites in Bitterfeld-Wolfen and Hohenstein-Ernstthal, will be managed by the provisional insolvency administrator Reinhard Klose.

Wages secured for three months

The insolvency administrators announced that the wages and salaries of the more than 600 employees will be secured for three months via the insolvency substitute benefits. This affects 289 employees in Hohenstein-Ernstthal and 332 in Bitterfeld-Wolfen.

According to the statement, the experts from Flöther & Wissing Insolvenzverwaltung have begun talks with the management and intend to review the economic situation and explore possible restructuring options in the coming weeks. "Meyer Burger is one of the European technology and innovation leaders in the industry," emphasized Klose. He explained that - if possible - the sites and as many jobs as possible should be retained.

Opportunities through sale without legacy burdens

An investor solution is seen as a possible way forward. Although such attempts had already failed beforehand, the administrators see better opportunities in insolvency proceedings. One advantage is that buyers could take over the business operations "without legacy burdens".

Meyer Burger has been suffering from a deteriorating market environment for some time, particularly due to growing competitive pressure from suppliers from China. With no investor solution in sight in the short term, the management teams of the two German companies filed for insolvency at Chemnitz Local Court.