German photovoltaic system integrator Phoenix Solar plans to restructure its business and divest several non-profitable operations in light of a volatile market environment.
The company plans to focus on growing markets in Asia and US, where its subsidiaries have an established presence.
Phoenix Solar currently has enhanced capacities in the North American and Asian market to sustainably manage, develop and expand its businesses; however those in Spain and Italy have been significantly reduced due to uncertain local markets.
The company has also decided to divest the components & systems and the power plant businesses in Germany and close its Oman subsidiary.
Bankers will however continue to offer financing to the company and is looking to quickly return to profitability.
Phoenix also signed contract amendments in relation to the corresponding credit agreements, following which the total financing volume was adjusted down to approximately €126m.
“This shift in strategy will necessitate that extraordinary expenses – largely write-downs and provisions – be accounted for in the financial statements as of 31 December 2012,” the company said.
