Embattled German solar developer S.A.G. Solarstrom has managed to convince a bank of its creditworthiness despite its liquidity problems, securing a 1.5 million (US$2 million) bridging loan to tide the company over for three months.
Solarstrom filed for insolvency in December, blaming delayed sales of solar projects in its domestic market and Italy, as well the late payment of a loan made to an Italian project company.
The Freiburg-based developer insisted the three-month insolvency period would allow it to come out of its cashflow crisis and restructure in a manner which would preserve the jobs of its 191 employees.
The company announced yesterday it had secured the loan which as a debtor-in-possession contract gives the lender pre-eminent status over other creditors from Sparkasse Freiburg.
In an announcement to investors, Solarstrom said the money would enable it to complete the delayed German and Italian project sales, complete its restructuring and search for investors ‘without any time pressure.'
The developer said it anticipates the project sales and the payment of the loan given to the Italian company to generate a low double-digit-million-euro figure by the end of June.
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