August 6, 2014 - S.A.G. Solarstrom AG has concluded the sale of the last three photovoltaic projects in its German portfolio. In late February, the company already reported the closing of the sale of the largest project in its portfolio, the photovoltaic system Jüterbog with 10.1MW, and thus was able to repay most of the bridging loan for the portfolio. After a few more projects, the sale of the last three photovoltaic systems with a total output of 5MW has been concluded to private investors, one photovoltaic system in Daßlitz and two photovoltaic systems in Sondershausen. With the closing of the sale of the remaining three photovoltaic systems in the German portfolio, S.A.G. Solarstrom AG will receive further funds in the mid-single-digit million range.
Cash inflow enables best possible strategic option
"In 2013, the insolvency of a component supplier and various sub-providers led to considerable delays in closings, while in 2014 it was the insolvency of S.A.G. Solarstrom AG. Originally, we had assumed that we would be able to conclude the sale by the end of June 2014", says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. "However, as we wanted to achieve an adequate market price, as in previous projects, the process took somewhat longer. We have now succeeded in successfully closing the sale of all German projects and thus securing the expected cash inflow".
Further cash inflows from the closing of the sale of an Italian portfolio as well as from the repayment of a loan are still outstanding, but are likewise expected in the next few weeks.
"We will not allow ourselves to be put under pressure, as is so often the case in insolvency proceedings, but are likewise negotiating appropriate solutions in these cases. Hasty decisions are not necessary", says Dr. Kuhlmann. These three considerably delayed cash inflows in the total amount of €20 million led to the liquidity crisis in December 2013 and ultimately to the company's filing for insolvency.
Investor process making good progress
"The cash inflows enable us to evaluate the best strategic variant for the Group that will simultaneously benefit the creditors in the insolvency process", explains insolvency administrator Dr. Jörg Nerlich from the legal offices of Görg, Cologne.
The strategic investors interested in the enterprise as a whole with all business areas are internationally active companies from Asia, North America and Europe. "That is why the investors' due diligence has taken longer than originally intended, as complex legal and tax issues need to be clarified for multinationally active companies", says insolvency administrator Jörg Nerlich. "According to the actual status, however, I assume that we will be able to conclude the investor process in the foreseeable future and thus achieve a continuation of the Group and a respectable rate for the creditors, in comparison with other insolvency proceedings. However, the effect of the transaction on the legal form of the company still remains to be seen, and this will in turn influence whether shareholders will receive a return flow of funds on their invested capital".