Aid's compatibility with the domestic market remains uncertain, as the Commission has not made a determination yet.
Hey there!
Looks like the struggling solar company Meyer Burger's woes could be tossing a spanner in the works for good ol' Saxony-Anhalt. According to the latest buzz, the state's wallet might be on the hook for a cool €16.5 million if things go south. That's right, you heard it! The Middle German Newspaper spilled the beans about this potential financial nightmare.
Meyer Burger had its grubby hands on a fat €115 million loan back in 2021 for setting up a solar cell factory in Bitterfeld-Wolfen and a solar module plant in Freiberg. The Ostsächsische Sparkasse in Dresden was the ring leader in this investment venture. And guess who lent a helping hand? The state of Saxony-Anhalt, the Free State of Saxony, and the federal government offered a whopping 80% guarantee!
When the cat's away, the mice will play, eh? It seems that Meyer Burger ditched its loan repayments for the first time on March 31, 2025. That's when the state's finance ministry knew they were in deep doo-doo.
But here's the $64,000 question: Will the banks demand their dues and make the state cough up the €16.5 million guarantee? It's unclear at this point. The banks already had collateral for the loan, but the value of that inventory and machinery is all dependent on the outcome of the insolvency proceedings.
A picture is worth a thousand words, so here's one showing the initial location of the solar cell plant in Bitterfeld-Wolfen.
(c) Meyer Burger
[Enrichment Insight: The state of Saxony-Anhalt stands as a potential backup payer for Meyer Burger's liabilities due to a guarantee of €16.5 million associated with the company's insolvency. The state could face financial exposure as it may need to fulfill this guarantee if Meyer Burger cannot repay its loans, which could impact the state's finances. The guarantee essentially increases the risk of a financial loss for Saxony-Anhalt due to Meyer Burger's insolvency.]
The ongoing financial troubles of Meyer Burger could potentially impact not only the solar industry but also the state's budget, as Saxony-Anhalt might be required to pay €16.5 million if Meyer Burger fails to repay its loans. Other businesses in the region could be affected if the state's finances are strained, as these funds would have to come from the state's budget for other industry and business purposes.
