On July 5, Germany-based PV solution and service provider Conergy AG filed to open insolvency proceedings at the District Court of Hamburg.
Conergy says it had been in negotiations regarding the short-dated entrance of a strategic investor. The company reports, however, that its creditors failed to agree on the sustainable-investor concept. In addition, Conergy notes that a delay in payment for a large-scale project led to illiquidity of its manufacturing subsidiaries Mounting Systems and Conergy SolarModule.
The Conergy board, therefore, decided to enter insolvency proceedings. The company says the district court will appoint a preliminary insolvency administrator who will decide whether and how the company can continue its manufacturing and business operations.
Conergy notes that the management board assumes German employees of the group will receive state-funded"insolvency wages," for the next three months.
"We fully support preliminary insolvency administrator in negotiations," says Conergy CEO Philip Comberg." 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.
"Without a solid capital structure, however, Conergy Group cannot continue its course for growth as planned,’ Comberg adds. ‘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."
Besides Conergy AG, the German sales entity Conergy Germany GmbH, Conergy SolarModule and Mounting Systems are affected by the insolvency proceedings. The company says consequences on the activities of its international branches remain unforeseen.