Hedge funds may take over German Conergy - report

(ADPnews) - Nov 26, 2010 - Hedge Funds may acquire a majority stake in German solar power company Conergy AG (ETR:CGY), daily Financial Times Deutschland (FTD) reported today quoting sources in the know.

Financial investors York Capital and Sothic Capital currently hold around 25% of Conergy's debt, which could be converted into equity, FTD reported. Such a move would enable the hedge funds to decide on Conergy's future, the daily reported.

A person close to the company told FTD that its business model is so fragile that the only option that remains is bankruptcy.

According to information of the daily, after the first nine months of the year, Conergy's net debt amounted to EUR 261.7 million (USD 348.2m). Auditing company PricewaterhouseCoopers analysed the situation and assessed it as unbearable for Conergy's creditors.

However, Conergy needs to find a solution for its refinancing by December 21, when its credits become due. According to sources close to the company, the period may be extended, FTD reported.

(EUR 1.0 = USD 1.331)

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