Insolvency administrator to sell projects, units of German Solar Millennium

(SeeNews) – Jan 6, 2012 – The insolvency administrator of German solar plant developer Solar Millennium AG (ETR:S2M) plans to sell all of the company's solar power assets and projects, Solar Millennium said on Thursday.

However, the insolvency administrator Volker Boehm does not want to give false hopes to the shareholders and bondholders, some 30,000 altogether.

Boehm will have to discuss the sale of every project with the respective co-developer. Solar Millennium has about 60 project development companies. However, in many cases the partners themselves could just get the stake of Solar Millennium in the project, dependent on the terms of the contracts.

What is more, most projects are at a very early stage of development. Only the Spanish plant Andasol, which is worth EUR 48 million (USD 61.4m), has already been put on stream. In addition, the value of the projects is not assessed, Boehm explained.

Solar Millennium had raised a large part of its funds by issuing five unsecured bonds. Some 16,000 investors bought bonds worth a total of some EUR 227 million.

The 14,000 shareholders of Solar Millennium would have their claims satisfied only after all creditors have been paid.

The salaries of the 60 employees of Solar Millennium are guaranteed until the end of February. However, the 250 employees in the project development companies will not be affected by the insolvency.

Solar Millennium filed for insolvency in December 2011

(EUR 1 = USD 1.279)

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