SAG Solarstrom files for insolvency

Dec 13, 2013 - German PV project developer SAG Solarstrom (ETR:SAG) today filed for insolvency under self-administration due to unexpected liquidity shortfall of EUR 20 million (USD 27.5m) and failed talks with creditors and banks for refinancing.

The liabilities are caused by a delay in scheduled for November and December cash inflow from the sale of German and Italian solar projects as well as delayed payments on a loan the company has granted to an Italian project firm, SAG Solarstrom said.

The troubled company downgraded its outlook on November 29 and said it expected an operating loss and a significant drop in sales compared with previous projections of a positive operating result and sales volume of over 117 MW.

In addition, negotiations for a solar project pipeline in the three-digit MW range fell through just last week.

Following the insolvency filing, SAG Solarstrom will not be able to make the interest payment due on December 16 for its 2010/2015 bond.

The firm will draw up a restructuring plan in the following three months in cooperation with a provisional trustee.

SAG Solarstrom was founded in 1998 and employs around 200 people.

(EUR 1.0 = USD 1.373)

Choose your newsletter by Renewables Now. Join for free!