News Article
Conergy files for insolvency
Hamburg-based Conergy AG will file application to open insolvency proceedings at the District Court of Hamburg.
Conergy has been in negotiations with a strategic investor. The company's creditors however failed to agree in a timely manner.
Now, unexpected delay in a payment resulting from a large-scale project led to illiquidity of Conergy's two manufacturing subsidiaries Mounting Systems and Conergy SolarModule. The Conergy Board came to the conclusion that the so far positive going concern is void.
Despite long- lasting and intensive negotiations the lenders could not agree on the sustainable investor concept presented by the Conergy Board even though nine out of ten creditors voted yes.
The cognizant district court will now appoint a preliminary insolvency administrator who will decide quickly whether and how the company can continue its manufacturing and business operations. The Management Board assumes that German employees of the group will receive state-funded "insolvency wages" for the next three months.
"In the last fifteen months, we have presented two concrete concepts on the investment by investors to our lenders. We very much regret that they repeatedly could not reach a reliable agreement on a timely implementation of the proposal," said Conergy CEO Dr. Philip Comberg. "Without a solid capital structure, however, Conergy Group cannot continue its course for growth as planned. The Management Board will now fully support the preliminary insolvency administrator in order to hopefully secure all jobs and to continue business operations without any disruptions "“ in our production facilities, the proceeding of our orders and the installation of our large-scale projects. We will further collaborate closely with the preliminary insolvency administrator in further negotiations with potential investors, as well as with Conergy's creditors."
Following several years of restructuring, Conergy significantly reduced its losses in 2011 despite a price decline of again 40%. In the first quarter of 2013 the PV solution and service provider achieved a strong increase in both volume and sales. In order to uphold this positive progress, Conergy planned to increase its activities in the capital-intensive large-scale project business in its global growth markets and to collaborate with suppliers as well as with strategic finance investors for this purpose. In order to finance this growth, the company needs a solid capital structure, in particular sufficient cash.
