July 31 (Bloomberg) -- Solar Millennium AG, a developer in insolvency proceedings, sold its 26 percent in a solar thermal power project in Spain to a unit of German utility Steag GmbH.
It agreed to sell the interest in the 50-megawatt Arenales project near Seville for a “double-digit million euro” amount that’s more than the equity invested, boosting prospects for creditors, administrator Volker Boehm said today in a statement.
The project, also owned by Deutsche Bank AG’s RREEF unit and Spanish builder Obrascon Huarte Lain SA, is in construction after being funded by a group of eight banks in September 2011.
The deal follows the sale of Solar Millennium’s interest in the Andasol 3 solar thermal project in Spain and its stake in developer Flagsol GmbH this month. Solar thermal power involves concentrating the sun’s rays with mirrors to make steam and power turbines to generate electricity.
Solar Millennium, based in Erlangen, Germany, filed for insolvency on Dec. 21, citing slow progress in selling its U.S. assets and the failure to reach an agreement on bringing in investors for its Ibersol venture in Spain.