Solar Millenium US investments file for Chapter 11; company gets sued03. April 2012 | Industry & Suppliers, Markets & Trends, Global PV markets | By: Shamsiah Ali-Oettinger
Solar Millenium faced a double-low as the company revealed that its U.S. subsidiaries and investment have filed for Chapter 11 bankruptcy. Former CEO Utz Claassen also decided to sue the company and part of its subsidiaries for defamation.
By filing for Chapter 11 bankruptcy, Solar Millenium's U.S. operations will remain in control as a debtor in possession, but be under oversight and jurisdiction of the court. With this filing, the insolvency administrator Volker Böhm will see to the sales process of the company's U.S. projects. Böhm says that through this chapter, interested parties can be given information about the projects and can make offers via a public tendering procedure. By selling its U.S. investments, the company hopes to allow millions of dollars to flow back into Solar Millenium's assets.
Meanwhile, former CEO Claassen looks to sue Solar Millenium AG, U.S. daughter firm Solar Millenium Inc. and the Solar Trust of America LLC, of which Solar Millenium Inc. has a 70 percent stake. Claassen is claiming that his reputation has been harmed by defamatory statements made to the public after he retired in 2010.
Böhm and the affected parties are proofing these claims at the moment. The case has no impact on the German insolvency proceedings. Even if Claassen is successful with his case, he will fall under the creditors and will have to contribute the damage sum to the insolvency table.
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