More Green City subsidiaries file for insolvency

Three more subsidiaries of struggling German renewables developer Green City AG plan to file for insolvency less than a month after the parent company due to their inability to repay debt obligations.

The affected companies include Green City Energy Kraftwerkspark II, Green City Energy Kraftwerkspark III and Green City Solarimpuls I, Green City AG said on Wednesday. They were set up with the goal of financing green power plants and have issued bonds worth a total of around EUR 115 million (USD 170.17m).

If the Munich District Court approves the application for the opening of insolvency proceedings, the three companies will be restructured in a process under self-administration.

The insolvency of the three companies will have no impact on the restructuring of Green City AG. The Munich-based renewables developer filed for insolvency in January after booking a significant loss for 2021 that exceeds half the share capital of the company.

In its statement on Wednesday, Green City again assured that the operating business, including the planning and implementation of projects, will continue and 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.

(EUR 1 = USD 1.134)

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