Solar Millennium AG
Court Orders
Press service
Questions & Answers on the Initiation of Insolvency Filing
1. How did the situation come to insolvency?

The Executive Board and the Supervisory Board of Solar Millennium AG determined on December 21 that the company was no longer able to meet the full extent of its payment obligations. The primary reason for this is that it was unable to conclude essential transactions. These included the announced disposal of the US project pipeline and the planned conclusion of financing for the Ibersol power plant project.

Negotiations for the sale of the US project pipeline had been underway since September and the Company was nearing completion. Agreement exists on most of the transaction and substantial contracts have already been signed. However, certain conditions for the effectiveness of the agreements have not yet been met. In the end, the amount and the timing of cash flows could not be confirmed as binding.

In addition, intensive negotiations with investors on their participation in the Ibersol project could not be finalized. Either transaction would have generated more than enough liquidity to meet the current needs and allowed the Company to continue to develop. The interim insolvency administrator is currently evaluating the situation.


2. What is the current status of insolvency proceedings?

The interim insolvency administrator of Solar Millennium AG, Volker Böhm, is maintaining the business operations of the insolvent company in order to permit an investor solution. Mr Böhm’s aim is to sell the project companies as a package or individually to one or more investors. This plan includes the American subsidiary “Solar Trust” as well as the other affiliated companies.


3. Are the subsidiaries also affected by this insolvency filing?

At present, the insolvency filing relates only to the parent company, the Solar Millennium AG. The subsidiaries are legally independent entities and are therefore not directly impacted by the filing. They will continue to do business. The extent to which the insolvency filing of the Solar Millennium AG will have an impact on the subsidiaries is part of the review by the interim insolvency administrator and the management of the subsidiaries.


4. What will happen to the planned projects and those currently under construction?

Here, the options are currently being reviewed by the interim insolvency administrator. He has contacted the Company’s existing and potential business and contract partners for negotiations.

With regard to the power plant projects currently under construction, the interim insolvency administrator is examining in how far these can be completed as scheduled.


5. When will the insolvency proceedings presumably commence?

Solar Millennium AG has filed for insolvency. The court is expected to make a decision in this regard during the course of the first quarter of 2012, presumably on 1 March 2012


6. Is Solar Millennium still capable of taking action?

The interim insolvency administrator is now running the business together with the Executive Board. The Company is therefore capable of taking action and making decisions.


7. I think I have a claim against the Company. Where and when can I assert this claim?

The preliminary insolvency administrator will make all due efforts to secure the current assets and dispose of them to the benefit of all creditors and investors.
Claims against the Company must be filed with the insolvency administrator after the proceedings commence. The Company is currently undergoing the preliminary insolvency proceedings. There are no deadlines that might be missed at present. Creditors will be informed separately.

  • What will happen with my fund shares?
Solar Millennium AG launched closed funds to finance two of its projects, namely “Andasol Fonds GmbH & Co. KG” and “Ibersol Fonds GmbH & Co. KG”. In terms of company law, the structures of the two funds are virtually identical. Neither fund has filed for insolvency. Both are legally autonomous companies. This means that investors who have bought shares in the funds are limited partners of the respective fund companies and are consequently not directly creditors of Solar Millennium AG.

The Andasol project (approx. 48 million euros of collected capital; 3,569 shareholders) has already been completed; the power station recently began generating electricity. The Ibersol fund (approx. 6.6 million euros of collected capital; 537 shareholders), by contrast, was terminated prematurely before insolvency was filed for. The money collected so far has been placed in a trust account and, in accordance with a decision of Ibersol Fonds GmbH & Co. KG, is to be paid out to the fund’s creditors when the fund is wound up. However, it will not be wound up by Solar Millennium AG, but by the fund company itself. The shareholders will be notified separately by their fund.

  • What will happen to my shares?
Shareholders are partners in Solar Millennium AG and will thus only be entitled to payment when the claims of all other creditors have been 100% satisfied. There is currently no potential for alternative solutions such as an insolvency plan procedure.

  • What will happen with bond funds?
The owners of partial debentures are creditors in the insolvency proceedings and, when the insolvency proceedings have been concluded, they will obtain the same percentage as all other unsecured creditors. To do so they must register their claim with the insolvency administrator, but only after proceedings have been opened, which will presumably be by 1 March 2012. It is not possible to predict today how high the percentage will be.


8. Will the staff continue to be employed?

All of the Solar Millennium AG’s 60 employees are still employed and working. The payment of their wages and salaries are guaranteed for three months, up to and including February 2012.

Solar Millennium AG and the interim insolvency administrator will keep you informed as the process continues. We ask creditors to be patient, as the review of the insolvency filing can take some time due to the complex corporate structure. We thank you for your understanding!


Press contact:
Mail: Presse@schubra.de, Phone: +49.179.1009080