Clean Industry Solutions Holding Europe AB’s subsidiary Industrial Solar GmbH will file for insolvency proceedings in Germany
The board of Clean Industry Solutions Holding Europe AB (publ) (“CISH Holding” or the “Company”) announces that its wholly owned subsidiary Industrial Solar GmbH will file for insolvency to avoid a larger damage to the group. If it should not be possible to reconstruct Industrial Solar GmbH within the insolvency proceeding Rebecca Schwantes, CEO of SolarSpring GmbH, will take over the CEO position of CISH Holding from the current CISH Holding CEO Christian Zahler.
Industrial Solar GmbH and SolarSpring GmbH’s operations and results have progressed in 2023, but operational costs have also increased. Specifically, the flagship technology of Industrial Solar GmbH, the linear concentrating Fresnel collector which can provide process heat with temperatures of up 400°C, requires a large multidisciplinary team of engineers. Cost of photovoltaic modules has reached record lows during the last months causing not only a "precarious" situation for European solar photovoltaic (PV) manufacturers, but also decreasing the competitiveness of solar thermal technologies and thus slowing down and reducing the order intake.
It was found that both subsidiaries of CISH Holding had negative equity and were threatened by insolvency. SolarSpring GmbH however, with its significantly lower operational costs, and currently focusing on the very promising market of ultra-pure water supply for green hydrogen production, was able to eliminate its negative equity, thus no longer fulfilling the insolvency criteria.
Industrial Solar GmbH was unfortunately not able to eliminate its negative equity. Even with further loans from CISH Holding presenting a possibility of continuing business, Industrial Solar GmbH could not be freed from the threat of being insolvent again in the following months. It was a very difficult decision for the board of CISH Holding as its objective is to protect the value of CISH Holding’s assets. Providing further equity to Industrial Solar GmbH with no likely possibility to prevent insolvency of the subsidiary could not be justified by the board.
Therefore, it was decided to file for insolvency proceedings for Industrial Solar GmbH in the coming days in Germany. The board furthermore concluded that if Industrial Solar GmbH cannot be restructured within the insolvency proceedings in such a manner that allows the continuation of its business, Ms. Rebecca Schwantes CEO of SolarSpring GmbH, will take over the CEO position of CISH Holding from the current CISH Holding CEO Mr. Christian Zahler.
In case that the insolvency proceeding will not be successful, but will end in a bankruptcy, CISH will have to write off the asset causing a loss of approx. 15 mSEK.
The board is confident that this decision is in the best interest of its shareholders under the current circumstances as it is preserving the maximum possible value of the Company.
This disclosure contains information that Clean Industry Solutions Holding Europe is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 03-12-2023 10:10 CET.