Forest wind turbines: investor in financial distress
Created: 12/26/2021, 3:05 PM
From: Michael Acker
Green City AG wants to erect up to five wind turbines in the Ebersberger Forest (here example image).
© Energy Agency
Is the wind turbine project in the Ebersberger Forest at risk?
The investor, Green City AG, is in any case in tangible financial difficulties.
District
- Green City AG, which wants to build up to five wind turbines in the Ebersberger Forest, is in serious financial difficulties.
This is what ECOreporter, a magazine for sustainable investments, and other sources report about the Christmas holidays.
It is still unclear to what extent the imbalance will affect the investor's project in the forest.
The Green City group companies Green City Energy Kraftwerkspark II GmbH & Co. KG, Green City Energy Kraftwerkspark III GmbH & Co. KG and Green City Solarimpuls I GmbH & Co. KG are affected by the financial difficulties.
Green City AG, the parent company of the group, has therefore called an extraordinary virtual general meeting for January 20th.
Loss of more than half of the share capital
In the invitation letter, quoted from the ECOreporter, Green City assumes that due to the necessary value adjustments of receivables, investments in subsidiaries as well as expected sales and earnings losses "a loss of more than half of the company's share capital occurred in the 2021 financial year" . The Management Board continues: “Green City AG is confronted with operational difficulties that have a negative impact on the financial position of the entire group. There are currently considerable delays in numerous important wind and solar park projects of the group. Due to the resulting loss of income, Green City AG expects a negative annual result for the full year 2021. "
In addition, when preparing the 2020 annual financial statements, it was found that “value adjustments, among other things, for project rights and provisions for future obligations from guarantee promises” were necessary.
Green City cites reduced yields, losses and delays in renewable energy projects as reasons for the need for correction.
Protection community of the capital angels sees existential crisis of the company
Overall, from the perspective of the Schutzgemeinschaft der Kapitalanleger eV (SdK), the company is in an existential economic crisis, reports the Süddeutsche Zeitung. Green City AG and its subsidiaries have issued a large number of listed and unlisted investment products such as funds, bonds and participation certificates in the past few years. Due to the financial crisis of the corporate group, from the SdK's point of view, many of these products appear to be in whole or in part at risk of failure. "Some subsidiaries will in all probability need restructuring or insolvency proceedings," the SZ quotes Daniel Bauer, member of the board of the SdK.
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