“Following an intensive review of alternative concepts for the implementation of financial restructuring, the executive board has reached the conclusion that a going concern … cannot be restored on a sufficiently secure legal basis,” the ailing group said in a statement.
“Therefore the filing for insolvency proceedings is legally necessary.”
Q-Cells said its executive board and the preliminary administrator “will work together to secure the continuity of the company within the insolvency proceedings.”
Q-Cells, which employs more than 2,000 people, has been in dire financial straits for weeks. Its collapse comes after a series of corporate failures in the solar power sector in Germany recently.
Shares in the firm lost more than 30 percent of their worth on Monday morning on the back of rumours about the company’s financial health. By the middle of the afternoon, management had confirmed they would be filing for bankruptcy on Tuesday.