U.S. financial investor Kawa Capital Management has purchased the global subsidiaries of insolvent German solar group Conergy subsidiaries, including its sales units in the U.S., Canada, Singapore and Thailand.
Kawa, which agreed to buy the divisions in July, will purchase the groups assets in a two-step process, acquiring first the four international divisions effective immediately.
The Miami Beach-based Kawa announced in July its intention to buy the German group’s assets. Conergys mounting system and module manufacturing units are not part of the Kawa deal.
Conergy said Kawa was working towards closing the second step acquisitions of its remaining foreign subsidiaries as well as its administrative, management and infrastructure units by October at the latest, "subject to conclusion of the relevant agreements."
For the time being, Conergys remaining divisions will continue to operate in their current structure, the company said.
The two-step approach was necessary, according to Conergy, "due to the increased financing requirements of these subsidiaries caused by the continuously strong order book for the construction of large-scale power plants."
"Kawa is taking on responsibility as new investor and with its financing ensures the implementation of new projects," said Conergy CEO Philip Comberg. "This shows the strong commitment and determination of our new partner."
Conergy is currently working on a number of large-scale projects in North America and Asia.
"With the construction progress the financing needs have increased as expected," Comberg added. "In recent weeks we have focused on ensuring the necessary funding for these projects. We have been working hard on a solution: The first step in the two-step procedure for the planned transfer of all global sales units has been implemented now."
Kawa partner Andrew de Pass said the investment group was "working towards finalizing the planned transaction as early as possible," adding, "Kawa and Conergy are a perfect fit and the takeover enables us to create a globally unique market player. We are committed to the Conergy takeover and are working towards closing the planned acquisitions of the remaining Conergy units in a second step by early October."
Conergy’s temporary insolvency administrator Sven-Holger Undritz said, "Only a small number of companies have been able to present an investor only two weeks after an insolvency application. The fact that we have quickly found a solution to tackle the increased financing requirements of the subsidiaries proves Kawas professionalism and commitment to successfully complete the acquisition as early as possible and responsibly further promote the business."
Undritz added that Conergy was also in "promising talks with potential investors for the production subsidiaries."
Conergy and its Mountain Systems and Conergy SolarModule subsidiaries filed for insolvency in July after creditors failed to agree on plans for a possible new investor and as a result of illiquidity at the other divisions due to a delay in payment from a large-scale project.