Insolvent Green City could be sold by end-May

The insolvency administration of Green City AG is in talks with a small group of strategic investors and a deal for the sale of the struggling German renewables developer is expected by the end of May.

The prospects are promising as there was an exceptionally big number of interested investors, insolvency administrator Axel Bierbach said on Monday. The search for a buyer is now in the third and final phase, Bierbach added.

Green City AG filed for insolvency in January after failing to reach an agreement with investors on its restructuring and the district court of Munich opened the insolvency proceedings on May 1.

Meanwhile, the operations of the Munich-based company have been stabilised and a restructuring process has been launched.

The insolvency administration seeks to position the renewables developer in the best possible way before the sale. The project rights for a solar park in Brandenburg have already been sold while other assets in the project pipeline, including several hundred megawatts, are being reviewed and structured for sale.

Since the insolvency filing at the end of January, Green City has completed a wind park in Saarland and two solar farms in Saxony with a total capacity of around 25 MW. The operation of the existing plants of a combined 150 MW was also fully ensured.

In the course of restructuring and focusing on the core business, Green City AG has already sold its consulting subsidiary Green City Experience GmbH which specialises in sustainable mobility and urban development.

The insolvency administration is exploring various options for the future of Green City AG's subsidiaries GCE Kraftwerkspark I GmbH, Green City Energy Kraftwerkspark II GmbH & Co. KG, Green City Energy Kraftwerkspark III GmbH & Co. KG and Green City Solarimpuls I GmbH & Co. KG. The insolvency proceedings for these businesses are expected to open at the beginning of July.

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