Florida-based financial investor Kawa Capital Management Inc. has signed a letter of intent to acquire most of the global sales units from Conergy as well as the necessary associated administrative, management and infrastructure functions of Conergy AG, including the brand name. The letter was also signed by Conergy's management board and insolvency administrators.
Conergy says the parties intend to finalize the details of the envisaged transaction and purchase agreement in the next four weeks. The purchase agreement is expected to be executed in the second half of August, subject to a number of conditions, including the approval of Conergy's creditor committee.
Conergy filed for insolvency proceedings July 5.
Kawa says its objective is first to acquire Conergy's business entities that have not filed for insolvency. These include two German entities, Conergy Deutschland GmbH and Conergy Services GmbH, as well as subsidiaries in the U.S. and Canada, Singapore and Thailand, Australia, Spain, Italy, France, Greece, Cyprus and the U.K. The company says negotiations on further acquisitions are ongoing.Â
Kawa also plans to acquire the necessary associated administrative, management and infrastructure functions, including operations in Hamburg and Zweibrucken, Germany, as well as the brand ‘Conergy’ from the insolvent parent company Conergy AG.
Conergy's two production units, Conergy Mounting Systems GmbH and Conergy SolarModule GmbH & Co. KG, are not part of the planned acquisition. According to Conergy, the preliminary insolvency administrator is seeking separate solutions for both subsidiaries.
Production continues at Mounting Systems in Rangsdorf. Conergy SolarModule resumes production in Frankfurt today. Conergy says wages and salaries of the employees of Conergy SolarModule, Conergy AG and Mounting Systems are secured by the insolvency fund.