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After Solon, now Solar Millennium AG files for opening of insolvency proceedings | Europe

After Solon, now Solar Millennium AG files for opening of insolvency proceedings

The latest attempts to save the company failed. Neither the negotiations with solarhybrid AG nor the talks with investors regarding the project Ibersol could be finalised. In the afternoon the company informed that Solar Millennium AG no longer believes that the transaction with solarhybrid AG will be concluded before the end of the current year. Both companies had been in a very advanced state of negotiations on the sale of Solar Millennium?s US pipeline. Although Solar Millennium and solarhybrid reached a general understanding in terms of the substance and have signed significant agreements, certain conditions for the effectiveness of the agreements were not met. solarhybrid AG has pointed out to Solar Millennium, among other factors, that it needs more time for internal coordination and negotiation in the US. A binding confirmation on the amount and time of the cash flows could not be obtained until last.

Since 2010 Solar Millennium?s business strategy was full of uncertainties. It starts with the unexpected resignation of Utz Claassen, star manager and flagship CEO of Solar Millennium during only 74 days. He left the company with a ?9m bonus. Another shock was the announcement made in august of this year, when the company decided to convert the first 500 MW phase of the Blythe Solar Power Project in California to photovoltaic (PV) technology. The fact that that the company?s core technology were solar-thermal power plants, particularly parabolic trough plants, where they had a global leadership position, increased the doubts of investors.

Solar Millennium is the second German solar company that filed for insolvency after Solon in only one week.
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Posted by Gisela Bühl | 2011-12-21