S.A.G. Solarstrom: Final investment offers coming in next few weeks

By Caroline Salls

Pittsburgh, April 28 - S.A.G. Solarstrom AG's investor process initiated under its insolvency proceedings and supported by Roland Berger Strategy Consultants has so far gone according to plan, with binding final offers to be submitted in the next few weeks, according to a news release.

After submitting initial offers, the company said selected interested parties have been provided with access to an extensive body of data since April 24.

Insolvency administrator Dr. Jorg Nerlich, the company's executive board and a preliminary board of creditors expect to be able to present clear future prospects by the May 16 creditors' meeting, the release said.

Meanwhile, the company said development of the S.A.G. Solarstrom Group's international project pipeline will continue unchanged to ensure the growth opportunities on the still strong-growing international photovoltaic market.

As a result, S.A.G. Solarstrom said it has realistic chances of continuing the group and safeguarding jobs.

Nerlich said in the release that the company has "been able not only to retain around 170 jobs, but will even be able to create new jobs again in the future" in connection with the investment process.

"We have received a considerable number of expressions of interest over the last few weeks," Nerlich said in the release. "The offers are coming from Asia as well as Europe, North America and Germany.

"The majority of potential investors are showing interest in the company as a whole with all business areas, but we have also received offers for individual assets of the group."

Delayed cash inflows

S.A.G. Solarstrom said more than €20 million in cash inflows that were expected in November and December, the delay of which ultimately led to the insolvency filing, are still expected by the end of June. These include cash inflows from the conclusion of the sale of German photovoltaic projects, from the sale of an Italian system portfolio and from the repayment of a loan that was guaranteed to an Italian project company.

According to the release, these cash inflows will not directly impact the insolvency process, as S.A.G. Solarstrom AG announced at the end of November that it was expecting operating losses in business year 2014 stemming from the cancellation of a large project pipeline.

Construction update

The company said the implementation of new plant construction projects has currently been put on hold because of the insolvency and investor processes.

S.A.G. Solarstrom said development of international project pipeline will continue.

Under an agreement with the insolvency administrator and the preliminary board of creditors, S.A.G. Solarstrom said its international pipeline has been secured and further developed in Spain, Latin America, Africa and the Caribbean.

With suitable recapitalization through a strategic investor, the company said this project pipeline can then be implemented without major time delays.

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

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