S.A.G. Solarstrom subsidiary eyes settlement amid parent insolvency

By Caroline Salls

Pittsburgh, Dec. 23 - S.A.G. Solarstrom AG wholly owned subsidiary S.A.G. Solar Italia srl's advisory board decided to apply for the introduction of preventative settlement proceedings in connection with the parent company's insolvency proceedings, according to a news release.

S.A.G. Solarstrom said its self-managed insolvency proceedings invalidated group cash pooling and thus jeopardized the solvency of S.A.G. Solar Italia.

Under the cash pooling process, the Italian subsidiary has claims against the parent company in the mid-single-digit million euro range.

During the procedure, payments from S.A.G. Solar Italia may not be enforced. The company said it will submit a settlement offer to the creditors within a period to be fixed by the court of a maximum of 180 days.

Solarstrom is a Freiburg, Germany-based company that constructs and operates solar power plants and installations.

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