Conergy Americas, the North American subsidiary of Conergy AG, will continue to operate business at full capacity following its parent company’s decision to file an application for open insolvency in Germany on July 5, 2013. The filing decision is a formality per German law.
“We will do everything we can to support Conergy AG through the proceedings,” said Anthony Fotopoulos, president of Conergy Americas. “Currently Conergy Americas is secure and continues to experience strong growth. We are committed to providing our valued clients and partners the best solar solutions in the market place and the support that customers have come to expect from Conergy Americas.”
Conergy USA and Conergy Canada are wholly owned subsidiaries that make up Conergy Americas. Both organizations’ operations are financially independent from the Conergy AG and other subsidiaries around the world.
“Our primary focus is to ensure that all of our projects are implemented, warranties are honored, and customer relationships are maintained,” said Jared Donald, president of Conergy Canada.
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Conergy AG’s decision to file for open insolvency comes after lengthy negotiations on the entrance of a strategic investor to secure a solid capital structure and sufficient cash for the planned growth. While great strides were made to strategically grow the company, the lenders were unable to agree on the entrance of the new investor before the set deadline presented.
The responsible local Hamburg court has appointed Dr. Sven-Holger Undritz from White & Case as insolvency administrator. Mr. Undritz began his mandate at the weekend and is currently getting acquainted with the company’s overall situation.
“Conergy‘s foreign subsidiaries are not currently affected by their parent group's opening of preliminary insolvency proceedings.” said Dr. Sven-Holger Undritz. “Of course, we are evaluating the effects of the application for preliminary insolvency proceedings on all our sales units both in Germany and abroad,” said Undritz. “In Germany, neither Conergy Services GmbH nor Conergy Deutschland GmbH are currently affected by the insolvency proceedings. We are also optimistic that our international subsidiaries will continue activities as normal.”