Concentrating Solar Thermal Power Solar Millennium AG (ISIN DE0007218406), Erlangen, has filed for the opening of insolvency proceedings at the district court in Fuerth.
Already since September, the Company has been in a very advanced state of negotiations on the sale of its US solar energy pipeline. Agreement exists to a large extend on this transaction; substantial contracts have already been signed. However, certain conditions for the effectiveness of the agreements have not yet been met.
A binding confirmation on the amount and time of the cash flows could not be obtained until last. In addition, intensive negotiations with investors on the entrance into the project Ibersol could not be finalised. Both transactions would have generated funds beyond the current need for liquidity which would have laid the foundation for a further development of the Company.
The Management Board and the Supervisory Board deeply regret this development. In their effort to save existing assets for the shareholders and the creditors of the Company, the Company Bodies felt impelled to take this step.
Solar Millenium is a founding member in the Desertec initiative (see “Desertec Update”). The company developed the first parabolic trough power plant in Europe (Andesol 1). A year ago Solar Trust of America, LLC. Announced that Solar Millenium, its project development subsidiary had secured a decision to build the 500 MW Palen Solar Power Project and the 1000MW Blythe Solar Power Project.
In addition, negotiations with investors regarding the Ibersol project, a concentrating solar power plant under development in Spain, fell through. The Ibersol investment and U.S. project sales agreement would have provided sufficient liquidity for Solar Millennium and allowed for future development, thus allowing the company to avoid bankruptcy, Solar Millennium says.