Investors show interest in insolvent German Green City - report

German renewables developer Green City AG, which filed for insolvency in January, has been approached by various potential investors who have expressed interest in acquiring the entire company, the insolvency administrator told a German newspaper.

Insolvency administrator Axel Bierbach is looking for an investor who would take over the entire company, including all employees and assets and such investors have already signalled interest, he told Sueddeutsche Zeitung over the weekend.

Bierbach is confident that a solution will be found to continue the operation of the company and meet creditors' demands in the best possible way.

The insolvency administrator and his team are now reviewing the situation at Green City which is struggling to stay afloat after booking a significant loss for 2021 that exceeds half the share capital of the company. The insolvency filing followed an unsuccessful attempt by the company to reach an agreement with investors last month.

The review of all restructuring options is expected to take weeks, even months, due to the complexity of the situation, Bierbach said in an earlier statement.

The insolvency of Green City and its subsidiary GCE Kraftwerkspark I GmbH puts an investment volume of around EUR 151 million (USD 173.1m) at risk, the administrator told the paper.

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.

The largest shareholder in Green City is the Green City eV -- an association created by a citizens' group, which owns more than 53% of the struggling company.

(EUR 1 = USD 1.146)

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