Financially troubled SolarWorld Americas said its parent company's lenders have agreed to provide a $6 million cash infusion that could keep the Hillsboro solar panel manufacturer afloat as it waits for a crucial trade decision on new tariffs.

The infusion comes after SolarWorld eliminated 360 jobs in the past month and has seen other attrition that has reduced its headcount from about 800 to 300. The company had notified Oregon employment officials that it expected to cut at least 500 jobs and as many as 711. "This employment action is expected to be permanent," the May 19 letter said.

Lenders also have agreed to let SolarWorld sell a warehouse and some land adjacent to its Hillsboro factory. Together with the new loans, the company said it expects a "double-digit-million-dollar infusion" that could keep it operating "through 2017 and beyond."

In May, SolarWorld Americas' parent company, SolarWorld AG, filed for insolvency in Germany. The U.S. outfit has not made a similar move, but it has joined a trade case that seeks higher tariffs on imported solar products and minimum pricing levels to fend off Chinese manufacturers that it claims are dumping products on the U.S. market.

Initial findings on the trade case are due this fall, but the decision on whether to impose tariffs or minimum pricing will ultimately be up to the White House. Though President Donald Trump's rhetoric has been protectionist, he would be under heavy pressure from installers to avoid tariffs because, they say, higher prices would undermine the entire domestic solar market.

Reuters reported last month that an Australian investment bank, the Macquarie Group, had been hired to find an investor or buyer for SolarWorld.

Juergen Stein, president of SolarWold Americas, said the "financial reinforcement is good for our customers and suppliers alike. ... We are re-investing in our business to continue serving our loyal customers, as always."

Paula Mints, an industry analyst with SPV Market Research, was less sanguine. She suggests that SolarWorld's current strategy is to keep the doors open at the U.S. operation until the trade case is concluded. If the case is decided in its favor, it could ramp up production again.

But at present, she said, SolarWorld can't compete on price without losing money, and even its most loyal customers are leery to buy because of its financial uncertainty.

"It sounds to me like a manufacturing ghost ship," Mints said. "Their manufacturing costs are too high for the ridiculously low prices out there right now.

"So you let them limp along and see what happens with this, or alternatively so they can find a buyer, and I can't imagine anyone buying them before this trade decision comes down."

- Ted Sickinger

503-221-8505; @tedsickinger