Swiss solar manufacturer Meyer Burger has officially applied for a debt moratorium.
Earlier this year, Meyer Burger initiated a merger and acquisition process but ultimately failed to find investors for the entire group, including the parent company Meyer Burger Technology and its two subsidiaries, Meyer Burger Switzerland and Meyer Burger Research. The parent company’s board now believes that “there is no realistic chance to save the entire group, including the parent company.” Currently, the parent company is seeking to reach a debt settlement agreement to avoid paying liquidation dividends to shareholders. A debt settlement agreement is a legally binding contract between a debtor and multiple creditors, wherein the creditors agree to accept less than the full amount owed to settle the debts.
The company attributes its collapse to competition from low-cost Chinese module imports and “uncertainty regarding the future promotion of renewable energy in the United States and Europe.” Earlier this year, multiple subsidiaries and factories under the Meyer Burger Group, such as the solar cell plant in Thalheim and the R&D and mechanical engineering base in Hohenstein-Ernstthal, initiated bankruptcy proceedings. Nearly 600 employees at the German factories, with the exception of the liquidation team, have been dismissed and notified, while 45 employees in Switzerland recently received similar notices.
Despite the overall dire situation, Meyer Burger is still working to sell parts of the group’s assets or assets of its various companies in Switzerland, Germany, and the United States. On September 17, Meyer Burger announced that, with approval from the relevant U.S. court on September 5, it had sold its battery and module production machinery to Waaree Solar Americas, the U.S. subsidiary of an Indian module manufacturer, and Babacomari Solar North, for a total of nearly $29 million. This transaction follows the cessation of production at the Arizona module assembly plant and the dismissal of the U.S. team in May. Shortly after closing the Arizona module factory, Meyer Burger’s U.S. subsidiary filed for Chapter 11 bankruptcy in June of this year.
Last year, Meyer Burger’s financial difficulties worsened, leading to a delay in the release of its first-half financial results. Preliminary figures showed declining sales, and the final results revealed that the net loss for the first half of 2024 had increased fivefold. In November 2024, the termination of a component supply agreement of up to 5GW in the U.S. with developer D. E. Shaw Renewable Investments (DESRI) further exacerbated the company’s troubles. Today, Meyer Burger faces an uncertain future amid these mounting challenges.
