Mediaboss Marketing

PRESS RELEASE: S.A.G. Solarstrom AG files for insolvency

DGAP-News: S.A.G. Solarstrom AG / Key word(s): Insolvency S.A.G. Solarstrom AG files for insolvency

13.12.2013 / 10:44

=--------------------------------------------------------------------

S.A.G. Solarstrom AG files for insolvency

- Self-administration of proceedings planned - Refinancing negotiations to bridge liquidity shortfall fail - No interest payment on bond 2010/2015 on December 16, 2013

Freiburg, December 13, 2013. S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008), today filed for insolvency at the District Court of Freiburg i.Br.. Refinancing talks have been held with banks, financial services providers and other creditors as a result of cash inflows that have not been received on time and in view of the operative losses expected since November 29, 2013. In these talks, however, it was not possible to cover at short notice the liquidity shortfalls that have arisen and thus to guarantee payment of liabilities with matching maturity. S.A.G. Solarstrom AG is thus insolvent, although the company is not over-indebted in accounting terms. It is thus also not possible to make the interest payment on the corporate bond (ISIN: DE000A1E84A4, German security identification number: A1E84A), due on December 16, 2013. In the insolvency proceedings, planned under self-administration, the Group will work together with a provisional trustee over the next three months on a restructuring concept in which the creditors are to be closely involved. The goal is a sustainable concept to support the continuation of the Group.

'Within less than four weeks, we were confronted with a situation which was completely unforeseeable for us', says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'We had firmly scheduled cash inflows from the closing of the sale of German photovoltaic projects, from the closing of an Italian project with 7 photovoltaic systems and from a loan that we had granted to an Italian project company, for November and December. They were delayed for completely different reasons. Altogether, a sum of over EUR20 million is lacking. It has not been possible for us to cover this significant liquidity shortfall, despite all our efforts'.

Insolvencies in the industry delay cash inflows from Germany In the closing of the sale of German projects, S.A.G. Solarstrom AG was already affected by the insolvencies of a module supplier and several service providers during the course of the year. The insolvency of the module supplier led to bank financing for projects being called into question or refused. Alternative insurance solutions accepted by banks were not realizable. With regard to the service providers, alternative solutions also needed to be found and substantial reworking was required. Both delayed the closing of the sale of these systems and thus also the planned cash inflows in the high single-digit million Euro range.

Cash inflow from Italy will now only be received in 2014 During the second half of November, it became apparent that a cash inflow expected in November in the mid-single-digit million Euro range would probably only be received during the course of 2014. This was due to the fact that the sale of an Italian system portfolio could not be closed due to a legal dispute with the network operator. Definitive legal assessments by the external lawyers of the financer in favor of the project company had not called the closing into question.

View post:
PRESS RELEASE: S.A.G. Solarstrom AG files for insolvency