France's Qair Group agrees to buy insolvent Green City

France-based green energy producer Qair Group has clinched a deal to acquire the core business of renewables developer Green City AG about four months after the German company filed for insolvency.

As part of an asset deal, Qair Group will take over a big number of the 150 project companies that were set up for the development of wind and solar power plants and nearly all employees at the troubled Green City, the German company said on Friday.

Qair is also acquiring Green City's two companies in Italy and France as well as Green City Operations & Management GmbH, which is responsible for the commercial and technical management of solar and wind parks.

The sale also ensures the power plant maintenance and the further development of wind and solar projects by Green City Energy Kraftwerkspark II GmbH & Co. KG, Green City Energy Kraftwerkspark III GmbH & Co. KG and Green City Solarimpuls I GmbH & Co. KG.

Green City AG filed for insolvency in January after failing to reach an agreement with investors on its restructuring and the district court of Munich opened the insolvency proceedings on May 1.

The Munich-based company continued operations during the preliminary insolvency proceedings as the insolvency administration was able to stabilise the business and launch a restructuring process.

The sale drew the interest of a very big number of investors from Germany and abroad, said insolvency administrator Axel Bierbach. Qair emerged as the winner in the bidding because it offered the best prospects for both the project development business and the employees, Bierbach added.

With operations in 16 countries across Europe, Latin America, Africa, and Asia, Paris-based Qair produces green electricity from wind, solar and hydropower. The group has a portfolio of 719 MW in the construction and financing phase and is targeting an installed capacity of 1GW by 2022.

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