Additional millions for Solar Millenium creditors
Erlangen, 14 March 2013. In the scope of the insolvency proceedings of the Company's US investments, the insolvency administrator of Solar Millennium AG, Volker Böhm, has concluded an arrangement with the Company's creditors in the US. This could add back-payments worth EUR 10 million and more to the German insolvency estate.
Initially, Solar Millennium AG's claims had not been recognized in the insolvency proceedings of the US subsidiaries. Böhm had then sought several legal remedies in order to make the creditors agree to an arrangement. Thus, he simultaneously managed to avoid a lengthy legal dispute. This would have delayed the back-payment of funds by several years besides incurring millions in costs to the detriment of the creditors. According to expert estimates, the legal costs would have amounted to about EUR 3.5 million.
The inflow of funds from the arrangement consists of two main components: first, released guarantees (financial securities) amounting to some EUR 6 million; second, the German share in the proceeds from the sale of the US business. At present, this share is estimated to be at least EUR 5 million. If the projects, i.e. the solar projects Blythe and Palen, are successful, the proceeds could even amount to some EUR 10 million.
Böhm, who negotiated with the US creditors for more than one year, is pleased. "The creditors can now expect to recover a substantial ratio", he emphasized. "That is highly pleasing, especially considering the difficult situation at the beginning of the insolvency proceedings".
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