Energetica in insolvency proceedings

Austrian module manufacturer Energetica has filed for insolvency with the competent regional court in Klagenfurt, which then opened reorganization proceedings yesterday. According to a statement from the creditor protection organization AKV (Alpenländischer Kreditorenverband), the goal is to continue the company.
Founded in 2004, Energetica had announced in August 2018 that it would set up module production with an annual capacity of one GW. According to the insolvency statement published by AKV, the planned production volume could not be achieved, essentially due to the Corona crisis. Not only the delivery of the raw materials, mainly sourced from China, in particular solar cells, but also necessary adjustments to the production machinery, which also came from Chinese manufacturers, fell behind schedule. In August of this year, the shareholders injected additional capital, but by September »the liquidity situation was already very tight«.
Meanwhile, the search for investors was unsuccessful. At the end of October, Energetica had already informed its 112 employees about the critical situation; since then, the insolvency that has now occurred had been expected.
Claims can be asserted until December 20, and a creditors' meeting is scheduled for January 4, 2022. The company’s liabilities amount to almost €24.9 million ($28 million). Energetica proposes a reorganization plan with a 20 percent quota. Assets are valued at €24.7 million as of October 31; if the reorganization fails, this will be reduced to €2.9 million ($3.3 million), according to AKV.

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