German solar energy component maker SolarWorld AG (SWV.XE) said Monday a creditors' meeting failed to vote on the proposed restructuring plan, through which the heavily indebted company wants to avert insolvency, due to the lack of a quorum.
It added, however, that it will seek creditors' approval at a second meeting scheduled for August 5.
MAIN FACTS:
-SolarWorld said that 21.93% of the outstanding bond due to mature in 2016 were represented at Monday's creditors' meeting.
-As expected, the quorum of at least 50% required by law was not met and the creditors' meeting was therefore unable to adopt the proposed resolution regarding the restructuring plan.
-In accordance German law, SolarWorld therefore plans to convene a second creditors' meeting for the purpose of passing anew the resolution regarding its restructuring concept.
-This second meeting will take place on August 5.
-For the second meeting on the restructuring concept, German law prescribes a quorum of at least 25% of the outstanding notes only. The resolutions require a majority of 75 percent.
-A large number of institutional investors which didn't participate Monday announced that they would be exercising their voting rights at the subsequent meeting.
-Chief Executive Frank Asbeck said he is confident the second creditors' meeting will have a quorum and result in the necessary majority approval for the company's restructuring plan.