DGAP-News: S.A.G. Solarstrom AG files for insolvency

DGAP-News: S.A.G. Solarstrom AG / Key word(s): Insolvency S.A.G. Solarstrom AG files for insolvency 13.12.2013 / 10:44 --------------------------------------------------------------------- S.A.G. Solarstrom AG files for insolvency - Self-administration of proceedings planned - Refinancing negotiations to bridge liquidity shortfall fail - No interest payment on bond 2010/2015 on December 16, 2013 Freiburg, December 13, 2013. S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008), today filed for insolvency at the District Court of Freiburg i.Br.. Refinancing talks have been held with banks, financial services providers and other creditors as a result of cash inflows that have not been received on time and in view of the operative losses expected since November 29, 2013. In these talks, however, it was not possible to cover at short notice the liquidity shortfalls that have arisen and thus to guarantee payment of liabilities with matching maturity. S.A.G. Solarstrom AG is thus insolvent, although the company is not over-indebted in accounting terms. It is thus also not possible to make the interest payment on the corporate bond (ISIN: DE000A1E84A4, German security identification number: A1E84A), due on December 16, 2013. In the insolvency proceedings, planned under self-administration, the Group will work together with a provisional trustee over the next three months on a restructuring concept in which the creditors are to be closely involved. The goal is a sustainable concept to support the continuation of the Group. 'Within less than four weeks, we were confronted with a situation which was completely unforeseeable for us', says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'We had firmly scheduled cash inflows from the closing of the sale of German photovoltaic projects, from the closing of an Italian project with 7 photovoltaic systems and from a loan that we had granted to an Italian project company, for November and December. They were delayed for completely different reasons. Altogether, a sum of over EUR20 million is lacking. It has not been possible for us to cover this significant liquidity shortfall, despite all our efforts'. Insolvencies in the industry delay cash inflows from Germany In the closing of the sale of German projects, S.A.G. Solarstrom AG was already affected by the insolvencies of a module supplier and several service providers during the course of the year. The insolvency of the module supplier led to bank financing for projects being called into question or refused. Alternative insurance solutions accepted by banks were not realizable. With regard to the service providers, alternative solutions also needed to be found and substantial reworking was required. Both delayed the closing of the sale of these systems and thus also the planned cash inflows in the high single-digit million Euro range. Cash inflow from Italy will now only be received in 2014 During the second half of November, it became apparent that a cash inflow expected in November in the mid-single-digit million Euro range would probably only be received during the course of 2014. This was due to the fact that the sale of an Italian system portfolio could not be closed due to a legal dispute with the network operator. Definitive legal assessments by the external lawyers of the financer in favor of the project company had not called the closing into question. In addition, it was definite at the beginning of December that a cash inflow to S.A.G. Solarstrom AG in the mid-single-digit million Euro range from a loan that had been granted to an Italian project company would also be significantly delayed. The repayment of the loan is now expected by the end of Q1 2014 at the earliest, for formal legal reasons. Here too, an external legal assessment certifies the opposing legal opinion. Restructuring concept will be drawn up in the next three months Up until November 29, 2013, S.A.G. Solarstrom AG had expected to achieve its forecast for the business year with a positive operative EBIT and an installation and sales volume of more than 117 MWp. At this point in time, contract negotiations on the implementation of a project pipeline in the three-digit MWp range were still in progress. From an organizational point of view, however, it would no longer have been possible to implement the entire installation volume from this pipeline planned for 2013. On December 5, S.A.G. Solarstrom AG then had to announce the failure of contract negotiations, as no negotiation solution regarding the required guarantees could be achieved. These guarantees would have presented a disproportionately high capital commitment for S.A.G. Solarstrom AG, particularly in light of the delays in cash inflows. 'The fact that we will not implement this project pipeline has only affected the insolvency to the extent that the negative operating result now expected has made the refinancing talks more difficult', explains Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'I am convinced that S.A.G. Solarstrom AG has a very realistic chance of continuing the company through restructuring, due to its profitable units and enormous expertise'. In the insolvency proceedings under self-administration applied for by S.A.G. Solarstrom AG, the company will work on a sustainable restructuring concept together with a provisional trustee and the provisional creditors' committee over the next three months. About S.A.G. Solarstrom AG S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent provider of photovoltaic plants configured to customers' individual needs. The Group constructs plants of all sizes both in Germany and abroad. S.A.G. Solarstrom AG also produces solar energy at its own plants. S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of photovoltaic plants, including forecast and energy services, yield reports, and remote service and maintenance, as well as insurance and financing. The Group thus offers a comprehensive value chain in photovoltaics, from yield reports, planning, construction, operations, and monitoring to optimization, repowering, and deconstruction. S.A.G. Solarstrom AG was founded in 1998. Around 200 specialists work at the four locations in Germany and the foreign subsidiaries. S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock Exchange as well as according to the rules and standards M:access of the Munich Stock Exchange. Further information: www.solarstromag.com Contact: S.A.G. Solarstrom AG Sasbacher Stra�e 5 79111 Freiburg Germany www.solarstromag.com Public Relations / Investor Relations Jutta Lorberg phone: +49-(0)761-4770-311 e-mail: pr@solarstromag.com / ir@solarstromag.com End of Corporate News --------------------------------------------------------------------- 13.12.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: S.A.G. Solarstrom AG Sasbacher Str. 5 79111 Freiburg Germany Phone: + 49 761 4770 0 Fax: + 49 761 4770 555 E-mail: mail@solarstromag.com Internet: www.solarstromag.com ISIN: DE0007021008, DE000A1E84A4, DE000A1K0K53, WKN: 702100, A1E84A, A1K0K5 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München (m:access), Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 244675 13.12.2013