Conergy reportedly in talks with Asian investor

Share

Hamburg-based PV group Conergy is in negotiations with a potential investor from Asia to possibly inject fresh capital into the debt-ridden, according to Reuters.

Conergy reportedly presented the unnamed investor to its creditor banks on Monday, along with a debt refinancing plan. The investor may be willing to invest up to €50 million ($65.1 million) for a 30% stake in the company if the banks accept the new deal.

As part of Conergy’s reported plan, the company’s creditor bank consortium, led by Commerzbank, would have to forgo a portion of the group’s debt, amounting to €261.5 million ($340.7 million).

"An agreement has to be made this week," a source close to the negotiations told Reuters.

Hedge fund York Capital, which assumed Conergy’s liabilities more than two years ago and continues to hold a 20% stake in the company, is reportedly looking to remain on board if the investor becomes a new shareholder.

Conergy has declined to comment on the press reports.

In May, Conergy announced it was issuing an unsecured convertible bond totaling €4.5 million ($5.86 million) to two strategic investors to provide the company liquid funds in the same amount. The investors have the right to convert the bond, which has a fixed annual coupon rate of 7% and is due on June 30, 2015, to ordinary shares of up to €4.35 million ($5.66 million).