Insolvent renewables developer Green City to continue operations

Insolvent German renewables developer Green City AG will continue its operations after a court in Munich appointed an insolvency administrator who will study options for the restructuring of the struggling company.

Insolvency administrator Axel Bierbach and his team are now reviewing the situation at the Munich-based company which in January filed for insolvency after booking a significant loss for 2021 that exceeds half the share capital of the company.

All restructuring options will be considered but this would take weeks, even months, due to the complexity of the situation, Bierbach said on Monday.

The operating business, including the planning and implementation of solar, wind and hydropower projects will be maintained without constraints, Green City said. The maintenance of the plants already in operation with a combined capacity of 150 MW has also been secured.

The company is now working on four projects with a total capacity of nearly 40 MW in Germany and four other wind and solar projects of about 26 MW are expected to be ready for construction by March.

Bierbach sees good chances for the rescue of the troubled company and plans to launch a structured process for the search of a new investor.

Green City is in dire straits as it failed to reach an agreement with investors last month which led to the insolvency filing. The company was holding talks with investors and planned to unveil a restructuring concept but the discussions were not successfully concluded.

The green energy group invested a total of EUR 535 million (USD 596.8m) in renewable energy projects from its inception in 2004 to the end of 2020. According to Bierbach, its projects are financed primarily through debt.

Apart from the parent company, GCE Kraftwerkspark I GmbH, a subsidiary of Green City, also filed for insolvency.

(EUR 1 = USD 1.116)

Choose your newsletter by Renewables Now. Join for free!