Provisional insolvency administrator of Green City AG has started work

  • Restructuring expert Axel Bierbach appointed provisional insolvency administrator
  • Business operations to be continued without restriction
  • Good chances for investor solution and restructuring of the company / Renovation options for the power plant fleets are examined
  • Wages and salaries of the approximately 120 employees secured by insolvency money
  • Hotline for investors has been set up

Munich, 31 January 2022 – On 26 January 2022, the Local Court of Munich ordered the provisional insolvency administration of the assets of Green City AG and appointed the lawyer and restructuring expert Axel W. Bierbach from the law firm Müller-Heydenreich Bierbach & Kollegen (Munich) as provisional insolvency administrator. Munich-based Green City AG, a holistic provider of development, construction, financing and operation of renewable energy plants, had filed for insolvency due to imminent insolvency and over-indebtedness. GCE Kraftwerkspark I GmbH, a subsidiary of Green City AG, also filed for insolvency on 21 January 2022. Lawyer Bierbach has so far worked here as an insolvency expert.

Together with a team of experts, the provisional insolvency administrator Bierbach has begun to examine the economic situation of Green City AG and all companies belonging to the group of companies in Germany and abroad and to enter into discussions with all major stakeholders. The operational business of the AG, the project planning and implementation of projects in the areas of photovoltaics, wind energy and hydropower are to be fully maintained and all ongoing projects continued. The commercial and technical operational management of the plants already in operation with a total output of around 150 megawatts (MW) is also fully ensured. “We will now examine all renovation options for Green City AG. Our goal is to find a continuation solution for the company and to enable the best possible satisfaction of creditors,” said restructuring expert Bierbach. These include, in particular, thousands of retail investors, suppliers and institutional investors.

Bierbach sees good chances of success for the continuation and restructuring of the company: “Green City AG operates attractive projects, has a very good reputation and has an extremely committed and competent workforce,” Bierbach continues. The provisional insolvency administrator will now take up the investor talks initiated by the company last year and set up a structured investor process. First of all, however, he wants to stabilize the existing business. “Economically, it is essential that the project business continues and that the projects started can be completed,” said Bierbach. Green City AG is currently building four projects in Germany with a total capacity of almost 40 MW. By March, the company expects to be ready for construction for four further wind and solar power plants with a total capacity of around 26 MW.

“Our team supports the provisional insolvency administrator to the best of its ability to offer the company a perspective. We have the opportunity to connect numerous wind and solar parks to the grid and to leverage significant earnings potential in the future market of renewable energies,” says Jens Mühlhaus, CEO of Green City AG. Last week, the provisional insolvency administrator informed the approximately 120 employees of Green City AG about the situation and the further procedure. Their wages and salaries are to be secured by pre-financing the insolvency money of the Federal Employment Agency until March 2022 inclusive. “Filing for bankruptcy was a tough but necessary step for us and our partners. Now we are focusing on viable solutions to put the company on a new financing basis and to secure creditor claims in the best possible way,” added CFO Heike von der Heyden.

“The examination of the need for rehabilitation and the restructuring options for the power plant fleets, which are mainly financed by bonds, is already in full swing. Due to the considerable complexity, this will probably take weeks, if not months,” emphasized Axel Bierbach. For the investors of Green City AG and the power plant parks, a team of employees of Green City AG is available via a specially set up hotline (telephone: 089/890 668-500), who will be happy to answer questions by telephone.