Sunways AG: Sunways successfully averted insolvency proceedings

Konstanz, Germany - 15 August 2013 (pta005/15.08.2013/14:25 UTC+2) Company and locations secured / Realignment can be resumed / Involved parties comment on preliminary insolvency proceedings

Photovoltaics specialist Sunways (SWW:GR, SWWG.DE, ISIN DE0007332207) achieved its goal to avert the opening of insolvency proceedings. Following an out of court settlement with the applicant bank, the Konstanz local court issued a relevant order to terminate the preliminary insolvency proceedings against the assets of Sunways AG, Konstanz, and Sunways Production GmbH, Arnstadt. During the proceedings, Sunways also reached agreements with important creditors on the settlement of remaining claims.

For more details on the course of preliminary insolvency proceedings see:
http://www.sunways.eu/en/company/press/preliminary-insolvency-proceedings/index.html

Hoong Khoeng Cheong, Chairman of the Management Board/CEO of Sunways AG commented: "We were able to reach a first milestone and to remove many burdens from the past. Our current market environment, however, remains difficult and will undergo further changes. This means, we still have a lot of work ahead of us."

Looking back at the past few months he added: "Today I would like to express my thanks to all those who supported us in achieving our goal: There is our majority shareholder, without whom we would not have been able to avert insolvency proceedings. I would like to thank our creditors for their readiness to negotiate and our customers for their patience and their understanding of the one or other difficulty. And my thanks go to our employees and the management team for their confidence and commitment."

Hoong Khoeng Cheong mentioned in particular the good cooperation with the preliminary insolvency administrator appointed by the court, Dr. Thorsten Schleich from the law firm Schleich & Kollegen that is specialised in insolvency law, as well as the mediating role of the City of Konstanz and the Thuringian Ministry for Economy, Labour and Technology in crucial negotiations.

"The fact that Sunways regained its stability is a strong signal for the German photovoltaic industry. With Sunways, a company operating all over Europe, the industry has a modern and highly innovative company on the market. It is the task of politics to support such companies in difficult situations. They contribute their part to the energy system transformation in Germany. And only together with them the transformation can be a successful one. Thuringia, too, is benefitting from the company's stability: thus the future of the Sunways production site in Arnstadt has been secured", said Matthias Machning, Thuringia's Minister for Economic Affairs.

The Lord Mayor of the City of Konstanz, Mr. Uli Burchardt, also feels relief: "The long period of trepidation and uncertainty for the company and the employees is over. Now, the conditions for a successful financial regeneration of Sunways have been set. This is not only good news for the company itself, but also for the employees and the business location. The company is able to look forward again and I hope that as many jobs as possible will remain in Konstanz. Taken together, there is reason for confidence that Sunways will have a future in our city. It is a good sign, too, for Konstanz as a location for industry and technology."

Dr. Thorsten Schleich described his time as preliminary insolvency administrator as a "major challenge for me and my team. With the creditor arrangement and the following termination of the preliminary insolvency proceedings, however, the best possible result was reached in cooperation with the Sunways Management Board and the majority shareholder." The opening of insolvency proceedings could have lead to an asset stripping and liquidation of the company. Dr. Schleich is particularly pleased by the fact "that this provides a perspective for the preservation of jobs for the approximately 180 employees in total of Sunways AG and Sunways Production GmbH in Konstanz and Arnstadt." As companies in the photovoltaic industry are still facing a difficult market environment, it is "essential to further implement the already initiated restructuring and realignment measures. I wish the companies and their employees much success with this."

With successfully averting insolvency proceedings, the future of the Group and qualified jobs have been secured. Sunways can now continue to pursue the realignment of the business that had already been started in December 2012. "For the future, we want to position our business even more market- and customer-orientated. Sunways has more than 20 years of experience and know how in photovoltaics. We want our customers to considerably benefit from this extensive system expertise," said Hoong Khoeng Cheong, Chairman of the Management Board/CEO of Sunways. Sunways plans to gradually complement its product range with solutions for the smart consumption and management of self-generated power and to provide extended service offerings to its customers.

On 07 May 2013, the Konstanz local court had appointed a preliminary insolvency administrator and instituted protective measures against the assets of Sunways AG, Konstanz, and its wholly-owned subsidiary, Sunways Production GmbH, Arnstadt. Hoong Khoeng Cheong stated at that time: "We want to use the time ahead and, with the support of all stakeholders, avert insolvency proceedings." Sunways achieved this goal some days ago. Following an out of court settlement with the Company's former principal banks, the Konstanz local court issued a relevant order to terminate insolvency proceedings on 13 August 2013. Besides this arrangement that includes a waiver on the part of the banks, Sunways was able to reach agreements with key suppliers on the financial settlement of receivables and remaining claims under long-term supply contracts for raw materials during the proceedings. In addition, the majority shareholder has made an offer to other creditors of the Sunways Group to purchase their existing claims against a financial compensation.

More information about the Thuringian Ministry for Economy, Labour and Technology at: http://www.tmwat.de
The web address of the City of Konstanz is: http://www.konstanz.de/en/index.html.
Details about Schleich & Kollegen may be found at: http://www.schleich-kollegen.de

This press release is also available on http://www.sunways.eu/en/company/press/press-releases/

Forward-looking statements
This press release contains statements relating to the future business development of Sunways AG that are based on management assumptions and estimates made at the time of publication. Should the assumptions underlying the prognoses fail to be fulfilled, actual events may vary substantially from forward-looking statements. Uncertainties include changes in the political, legal, economic and business environment, exchange and interest rate fluctuations as well as the behaviour of competitors and other market participants. Sunways does not intend and is not under any obligation to update forward-looking statements on an ongoing basis as these are exclusively based on the circumstances prevailing as of the date of publication.

About Sunways
Sunways provides innovative products and solutions for harnessing solar energy (photovoltaics). Alongside high-performance components for standard applications (solar modules and inverters), the company also offers design-oriented solutions for special applications, such as semi-transparent and coloured solar cells for building-integrated photovoltaics. The company headquarters are in Konstanz, at the western end of Lake Constance in Germany. Other locations are Sunways Production GmbH in Arnstadt, Germany and branch offices in Bologna, Italy and Barcelona, Spain. Sunways currently employs a total of approximately 270 people and posted sales revenues of over Eur 116 million for 2011. Sunways AG shares (SWW:GR, SWWG.DE) are traded on the Frankfurt Stock Exchange. Since 2012, LDK Solar Group, one of the ten largest photovoltaics companies in the world in terms of revenues, has held a majority stake in Sunways. For further information, see http://www.sunways.eu/en.

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Emitter:	Sunways AG Max-Stromeyer-Str. 160 78467 Konstanz Germany
Contact Person:	Dr. Harald F. Schäfer
Phone:	+49 (0)7531 996 77-415
E-Mail:	communications@sunways.de
Website:	www.sunways.eu
ISIN(s):	DE0007332207 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart