Meyer Burger in talks with bondholders to inject fresh capital (updated)

Meyer Burger Technology AG

31/10/2024 23:42

(Adds details and background paragraph 3 onwards)
       Oct 31 (Reuters) - Swiss solar panel maker Meyer Burger
 MBTN.S  said on Thursday it has entered advanced negotiations
with a group of holders of its convertible bonds maturing in
2027 and 2029 to inject fresh capital into the business and
restructure existing liabilities under certain convertible
bonds.
    The company also said it now expects annual sales of around
CHF 350 to CHF 400 million and earnings before interest, taxes,
depreciation, and amortization (EBITDA) of around CHF 70 million
from 2026.
    Meyer Burger's ability to continue operating as a going
concern assumes a successful restructuring and closure of its
financing efforts in the very short term as well as the
implementation of its business plan, it said in its half-year
report, published on Thursday.
    The company also plans to obtain additional liquidity
through the sale of solar modules from existing inventories and
other assets that are no longer required.
    Earlier in August, Meyer Burger halted plans to build a
plant in Colorado, further delayed its financial results and
said it was drawing up a restructuring plan, sending shares down
more than 50%. 
    In September, it said that its CEO and CFO were leaving the
firm and that it would cut around 200 jobs as a part of its
restructuring program.
    Meyer Burger previously said it has suffered from market
distortion caused by production overcapacity in China and trade
restrictions imposed by India and the U.S.
    

 (Reporting by Kanjyik Ghosh; editing by Alan Barona)
 ((Kanjyik.Ghosh@thomsonreuters.com))