Green City AG convenes Extraordinary General Meeting

  • Loss of more than half of the share capital recorded in the 2021 financial year
  • Impairments and expected loss for the 2020 financial year

Munich, December 17, 2021 – Green City AG has today announced its shareholders in accordance with § 92 para. 1 AktG was invited to an extraordinary general meeting on January 20, 2022 in due form and in due time, since it must be assumed at its due discretion that a loss of more than half of the company’s share capital has occurred in the 2021 financial year both due to necessary value adjustments of receivables, investments in subsidiaries and as a result of expected loss of sales and earnings. The meeting will be held online due to the corona pandemic.

Green City AG is facing operational difficulties that have a negative impact on the financial position of the entire Group. For example, numerous of the Group’s important wind and solar park projects are currently experiencing considerable delays. Due to the resulting loss of revenues, Green City AG expects a negative annual result for the full year 2021.

As part of the completion of the 2020 financial statements, a need for value adjustments was also determined, among other things, for project rights and provisions for future obligations arising from guarantee promises. These result from reduced yields, losses and delays from and in renewable energy projects, the recoverability of which must be revised downwards. For the 2020 financial year, the company therefore now expects a negative overall result.

In addition, the 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, each of which issued exchange-traded bonds, today informed the capital market that they are in a financial crisis. Accordingly, Green City Energy Kraftwerkspark II GmbH & Co. KG may be threatened with insolvency and possibly over-indebted. Green City Energy Kraftwerkspark III GmbH & Co. KG and Green City Energy Solarimpuls I GmbH & Co. KG could potentially become imminently insolvent and possibly over-indebted.

This calls into question the existence of these Group companies and thus also the repayment of bearer bonds and interest payments from them. The reason for this is that payments by Group companies on loan repayment claims are not secured. The payment of the interest due on December 30, 2021 from the bearer bonds of Green City Energy Kraftwerkspark II GmbH & Co. KG is not secured.

Jens Mühlhaus, CEO of Green City AG, says: “The current situation has complex reasons. With the help of external experts, we are working at full speed to come to terms with our economic situation. We are doing everything we can to overcome the current challenges and to fully focus on our day-to-day business again.”

Chief Financial Officer Heike von der Heyden, who heads a team to assess the overall situation, adds: “We immediately took measures to counteract the negative impact on the financial position of the Green City Group. In addition, we are currently in the process of rapidly developing a comprehensive restructuring concept.”

The cornerstones of the restructuring concept, which Green City AG is developing in close cooperation with the renowned Munich consulting firm demps & partner, are to be presented to shareholders by the Executive Board at the upcoming Extraordinary General Meeting on January 20, 2022.

Meanwhile, the business operations of Green City AG and the Group companies will continue unchanged.