January 24 (Renewables Now) - German renewables developer Green City AG is set to file for insolvency on Monday as talks with investors on the financing of its restructuring measures were not successful.
The Munich-based company held a virtual extraordinary meeting on January 20 as adjustments on receivables and investments in subsidiaries, as well as expected sales and earnings shortfalls, led to a significant loss in 2021. The loss exceeds half the share capital of the company, Green City said last week.
The shareholders meeting did not exonerate the executive board from responsibility for their actions.
The developer was holding talks with investors and planned to unveil a restructuring concept. However, the talks were not successfully concluded, Green City subsidiaries said on Monday.
In October, Green City sold its power distribution subsidiary to its partner bpure in order to focus on the development of solar and wind projects across Europe. Green City Power was created in 2017 to deliver the electricity generated by the group's power plants to customers but the fierce competition and the electricity crisis led to its divestment.
The green energy group invested a total of EUR 535 million (USD 607.1m) in renewable energy projects from its inception in 2004 to the end of 2020. It implemented projects totalling 263 MW, including solar, wind, hydropower and bioenergy. The power plants in Green City's portfolio produced 290.36 GWh of green electricity in 2020 with wind power accounting for 67% of the total.
The company is majority-owned by Green City eV -- an association created by a citizens' group.
(EUR 1 = USD 1.135)