Enerparc attracts more than 100 potential investors as insolvency sale moves forward

More than 100 potential investors have expressed interest in acquiring all or parts of Enerparc AG, one of Germany’s largest independent solar power producers, following its insolvency filing in early September.

According to information obtained by pv magazine, initial indicative bids have already been submitted. Investment bank Rothschild has been appointed to oversee the mergers and acquisitions (M&A) process, with a decision on which bidders will advance to the next stage expected from mid-October.

Preliminary insolvency administrator Stefan Denkhaus told pv magazine that he was confident a first transaction could be agreed before the end of the year.

“We already have indicative offers in hand, with more to follow, and I am very optimistic that we will be able to announce a transaction in December,” Denkhaus said.

The initial transaction is expected to cover solar park portfolios, the project pipeline and stakes in companies including Sunnic Lighthouse and Enerparc Service, as well as the workforce. Further transactions involving additional solar park portfolios are unlikely to be completed before the first quarter of 2027.

Denkhaus said he would favor bidders interested in acquiring Enerparc as a whole. The company is one of Germany’s largest independent power producers (IPPs) in the solar sector, with vertically integrated operations spanning project development, construction and electricity marketing.

Asset deal with strategic or financial investor

According to information obtained by pv magazine, potential bidders include both strategic investors, such as utilities, and financial investors. A capital increase that would allow an investor to acquire a stake in the existing public limited company appears unlikely. Instead, the sale process is expected to result in an asset deal.

The differing financial structures of Enerparc’s project companies could make a phased transaction necessary. Some entities, including subsidiaries that are not insolvent, have relatively straightforward financing arrangements without mezzanine structures. Others have more complex financing arrangements that include mezzanine debt.

Not all creditors are likely to recover their claims in full, pv magazine has learned. Significant losses are not expected for project lenders, although it remains too early to assess potential losses associated with mezzanine financing. By contrast, losses are anticipated for providers of guarantees securing Enerparc AG’s suppliers and for the company’s direct lenders.

The group’s total financial liabilities stand at approximately €3.3 billion ($3.7 billion), including around €2.2 billion in project financing. These loans are largely secured against individual solar parks and serviced through revenue generated by the assets. In a sale of the project companies, the associated financing would typically be transferred along with the assets.

Meanwhile, an insolvency loan is being arranged to maintain operations until an investor takes over. According to information obtained by pv magazine, the required financing is in the low tens of millions of euros, with an agreement expected to be finalized shortly. The funding will also need to cover the period between signing and closing a transaction, which could take several weeks.

Stabilizing Sunnic Lighthouse

Stabilizing electricity trading subsidiary Sunnic Lighthouse has been a priority since Enerparc filed for insolvency. The parent company had previously provided guarantees backing Sunnic’s contracts, but those guarantees no longer offer sufficient security following the insolvency filing.

Banks are now almost certain to provide replacement guarantees, helping to restore security for external contractual partners and stabilize Sunnic’s operations.

Financing arrangements for solar projects currently under construction remain unresolved. Negotiations are also continuing over 14 to 15 plants that were close to completion when the insolvency filing was made. These projects were initially given priority, while potential investors have also shown considerable interest in the wider portfolio of projects under construction.

Enerparc filed for insolvency in early September after a key financing agreement for solar-plus-storage projects failed to materialize.

At the time, the company had 3.8 GW of solar capacity in operation and a further 1.5 GW under construction. Its battery storage portfolio included 150 MWh of operational capacity and another 160 MWh in the pipeline.

The insolvency affects just under 380 employees at Enerparc AG. A further 84 employees are affected by the self-administered insolvency proceedings involving Pvwerk and Sonnentiefbau.

Insolvency benefits for employees are covered until Nov. 30, while formal insolvency proceedings are expected to open on Dec. 1 at the earliest.