DGAP-News: S.A.G. Solarstrom AG files for insolvency

DGAP-News: S.A.G. Solarstrom AG files for insolvency

DGAP-News: S.A.G. Solarstrom AG / Key word(s): Insolvency
S.A.G. Solarstrom AG files for insolvency

13.12.2013 / 10:44


S.A.G. Solarstrom AG files for insolvency

  - Self-administration of proceedings planned
  - Refinancing negotiations to bridge liquidity shortfall fail
  - No interest payment on bond 2010/2015 on December 16, 2013

Freiburg, December 13, 2013. S.A.G. Solarstrom AG (German security
identification number: 702 100, ISIN: DE0007021008), today filed for
insolvency at the District Court of Freiburg i.Br.. Refinancing talks have
been held with banks, financial services providers and other creditors as a
result of cash inflows that have not been received on time and in view of
the operative losses expected since November 29, 2013. In these talks,
however, it was not possible to cover at short notice the liquidity
shortfalls that have arisen and thus to guarantee payment of liabilities
with matching maturity. S.A.G. Solarstrom AG is thus insolvent, although
the company is not over-indebted in accounting terms. It is thus also not
possible to make the interest payment on the corporate bond (ISIN:
DE000A1E84A4, German security identification number: A1E84A), due on
December 16, 2013. In the insolvency proceedings, planned under
self-administration, the Group will work together with a provisional
trustee over the next three months on a restructuring concept in which the
creditors are to be closely involved. The goal is a sustainable concept to
support the continuation of the Group.

'Within less than four weeks, we were confronted with a situation which was
completely unforeseeable for us', says Dr. Karl Kuhlmann, CEO of S.A.G.
Solarstrom AG. 'We had firmly scheduled cash inflows from the closing of
the sale of German photovoltaic projects, from the closing of an Italian
project with 7 photovoltaic systems and from a loan that we had granted to
an Italian project company, for November and December. They were delayed
for completely different reasons. Altogether, a sum of over EUR20 million
is lacking. It has not been possible for us to cover this significant
liquidity shortfall, despite all our efforts'.

Insolvencies in the industry delay cash inflows from Germany
In the closing of the sale of German projects, S.A.G. Solarstrom AG was
already affected by the insolvencies of a module supplier and several
service providers during the course of the year. The insolvency of the
module supplier led to bank financing for projects being called into
question or refused. Alternative insurance solutions accepted by banks were
not realizable. With regard to the service providers, alternative solutions
also needed to be found and substantial reworking was required. Both
delayed the closing of the sale of these systems and thus also the planned
cash inflows in the high single-digit million Euro range.

Cash inflow from Italy will now only be received in 2014
During the second half of November, it became apparent that a cash inflow
expected in November in the mid-single-digit million Euro range would
probably only be received during the course of 2014. This was due to the
fact that the sale of an Italian system portfolio could not be closed due
to a legal dispute with the network operator. Definitive legal assessments
by the external lawyers of the financer in favor of the project company had
not called the closing into question.

In addition, it was definite at the beginning of December that a cash
inflow to S.A.G. Solarstrom AG in the mid-single-digit million Euro range
from a loan that had been granted to an Italian project company would also
be significantly delayed. The repayment of the loan is now expected by the
end of Q1 2014 at the earliest, for formal legal reasons. Here too, an
external legal assessment certifies the opposing legal opinion.

Restructuring concept will be drawn up in the next three months
Up until November 29, 2013, S.A.G. Solarstrom AG had expected to achieve
its forecast for the business year with a positive operative EBIT and an
installation and sales volume of more than 117 MWp. At this point in time,
contract negotiations on the implementation of a project pipeline in the
three-digit MWp range were still in progress. From an organizational point
of view, however, it would no longer have been possible to implement the
entire installation volume from this pipeline planned for 2013. On December
5, S.A.G. Solarstrom AG then had to announce the failure of contract
negotiations, as no negotiation solution regarding the required guarantees
could be achieved. These guarantees would have presented a
disproportionately high capital commitment for S.A.G. Solarstrom AG,
particularly in light of the delays in cash inflows.

'The fact that we will not implement this project pipeline has only
affected the insolvency to the extent that the negative operating result
now expected has made the refinancing talks more difficult', explains Dr.
Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'I am convinced that S.A.G.
Solarstrom AG has a very realistic chance of continuing the company through
restructuring, due to its profitable units and enormous expertise'.

In the insolvency proceedings under self-administration applied for by
S.A.G. Solarstrom AG, the company will work on a sustainable restructuring
concept together with a provisional trustee and the provisional creditors'
committee over the next three months.

About S.A.G. Solarstrom AG
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN:
DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent
provider of photovoltaic plants configured to customers' individual needs.
The Group constructs plants of all sizes both in Germany and abroad. S.A.G.
Solarstrom AG also produces solar energy at its own plants.

S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of
photovoltaic plants, including forecast and energy services, yield reports,
and remote service and maintenance, as well as insurance and financing. The
Group thus offers a comprehensive value chain in photovoltaics, from yield
reports, planning, construction, operations, and monitoring to
optimization, repowering, and deconstruction.

S.A.G. Solarstrom AG was founded in 1998.  Around 200 specialists work at
the four locations in Germany and the foreign subsidiaries.

S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock
Exchange as well as according to the rules and standards M:access of the
Munich Stock Exchange.

Further information: www.solarstromag.com 

S.A.G. Solarstrom AG
Sasbacher Straße 5
79111 Freiburg

Public Relations / Investor Relations 
Jutta Lorberg
phone: +49-(0)761-4770-311
e-mail: pr@solarstromag.com / ir@solarstromag.com 

End of Corporate News


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Language:    English                                              
Company:     S.A.G. Solarstrom AG                                 
             Sasbacher Str. 5                                     
             79111 Freiburg                                       
Phone:       + 49 761 4770 0                                      
Fax:         + 49 761 4770 555                                    
E-mail:      mail@solarstromag.com                                
Internet:    www.solarstromag.com                                 
ISIN:        DE0007021008, DE000A1E84A4, DE000A1K0K53,            
WKN:         702100, A1E84A, A1K0K5                               
Listed:      Regulierter Markt in Frankfurt (Prime Standard);     
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München  
             (m:access), Stuttgart                                
End of News    DGAP News-Service  
244675 13.12.2013                                                      
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