Solon says it recorded a €52m ($74.7m) write-down in the second quarter on its SilPro investment, after predicting a €40m hit back in April.
SilPro, based in Saint Auban, has been in administration since April 2009. Solon blames the collapse of SilPro on the financial climate, which prevented the firm from getting loans.
Solon was linked to SilPro through its 48% stake in SOL Holdings, which it established with now-bankrupt Dutch renewables firm Econcern. SOL Holdings owns a 70% stake in SilPro.
“Despite extensive negotiations with potential lenders and investors, SilPro had failed to find a long-term solution before the end of the prescribed period,” Solon says.
SOL Holding is also being “wound up” following a decision by Solon and Econcern. In addition to SilPro, SOL Holding owns a stake in Austrian solar-cell maker Blue Chip Energy.
Solon will continue holding a 49% stake in Blue Chip following the latest events.