Nordic's SiC Processing loses half of equity

The necessary devaluations of its assets resulted in the loss of more than half of the company's equity, resulting in negative equity of -€90m.

The management and advisers are now aiming for a financial restructuring of the company in debtor-in-possession proceedings. They will have up to three months to present a detailed restructuring plan to the court.

Nordic Capital acquired SiC from a group of investors including Frog Capital through a secondary buyout in 2010. Former lead investor zouk ventures retained a 5% stake in the company, with the founding family controlling a 25% stake. Nordic invested through the Nordic Capital Fund VII vehicle.

SiC has struggled increasingly with the continuous decline in prices and severe over-capacity in the solar sector. At the beginning of December 2012, the Norwegian subsidiary of SiC filed for insolvency after its only customer itself went under.

The company still faces high payment arrears for several customers. In light of the coupon payment for its €82m bond, which is scheduled for 1 March 2013, SiC is threatened with inability to service its debt.

Prior to the filing, intensive restructuring efforts were implemented, the company said in a statement. SiC will remain able to operate during the protective shield proceedings.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• DACH
• Industrials
• Nordic Capital