Conergy files for insolvency05. July 2013 | Applications & Installations, Industry & Suppliers, Markets & Trends | By: Shamsiah Ali-Oettinger
German solutions provider Conergy filed for insolvency on Friday at the Hamburg District Court. Subsidiaries Mountain Systems and Conergy SolarModule also opened insolvency proceedings. Conergy's management board expects German employees will recevie state-funded "insolvency wages" for the next three months.
Conergy has said it would file to open insolvency proceedings on Friday. The company has been in negotiations with a potential Asian investor who was expected to bring in €50 million for a 30% stake in the company. As a result of the company's creditors failing to agree on a sustainable investor concept, however, the concern will now go ahead with the proceedings. Unexpected delay in a payment from a large-scale project as well has led to illiquidity of Conergy's subsidiaries Mounting Systems and Conergy SolarModule, both of which also filed for insolvency. This means that the state of a security or other assets cannot easily be sold or exchanged for cash without significant loss.
Nine out of 10 creditors apparently signalised their general affirmation as the company states but the intensive negotiations with the lenders did not quite reap definite results. A preliminary insolvency administrator will now be engaged to decide how the company shall proceed with operations. The German employees are expected to receive state-funded insolvency wages for the next three months.
"In the last fifteen months, we have presented two concrete concepts on the investment by investors to our lenders. We very much regret that they repeatedly could not reach a reliable agreement on a timely implementation of the proposal," said Conergy CEO Philip Comberg. "Without a solid capital structure, however, Conergy Group cannot continue its course for growth as planned. The management board will now fully support the preliminary insolvency administrator in order to hopefully secure all jobs and to continue business operations without any disruptions – in our production facilities, the proceeding of our orders and the installation of our large-scale projects. We will further collaborate closely with the preliminary insolvency administrator in further negotiations with potential investors, as well as with Conergy’s creditors."
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