Solar Millennium AG, a utility-scale solar project developer based in Erlangen, Germany, says it has initiated insolvency proceedings. In its announcement, the company explains that this step represents an effort to save existing assets for its shareholders and creditors.
Since September, Solar Millennium has been actively seeking to sell projects in its U.S. solar development pipeline. In October, the company announced an agreement with solarhybrid under which solarhybrid was to acquire Solar Millennium's 2.5 GW portfolio in the U.S. Southwest.
However, Solar Millennium says, ‘certain conditions for the effectiveness of the agreements have not yet been met,’ and a binding confirmation regarding cashflows was not obtained.
In addition, negotiations with investors regarding the Ibersol project, a concentrating solar power plant under development in Spain, fell through. The Ibersol investment and U.S. project sales agreement would have provided sufficient liquidity for Solar Millennium and allowed for future development, thus allowing the company to avoid bankruptcy, Solar Millennium says.