2014-01-21 13:07:28 - Prokon has been the subject of much discussion in recent months as their business model looked increasingly unworkable. In light of recent requests from investors for the return of funds, the liquidity issues faced by the company have become substantial.
Prokon Regenerative Energien GmbH, a German alternative energy company which operates around 314 wind turbines in Europe, may soon be forced to file for protection from creditors following increasing speculation about its potential insolvency. According to a statement issued by Prokon on January 17, 2014, investors have already requested the withdrawal of EUR 226 million worth of investment and there is little hope of avoiding insolvency should withdrawals exceed 5% of the total capital invested.
From 2003, Prokon collected funds through the issue of profit-participating certificates (so-called “Genussscheine"), a market that is lightly regulated and offers little in the way of investor protection. Currently, the total investment in Genussscheine amounts to EUR 1.4 bn. An annual financial statement for the fiscal
year 2012 remains unaudited, which is highly unusual.
Prokon has been the subject of much discussion in recent months as their business model looked increasingly unworkable. In light of recent requests for the return of monies invested, the liquidity issues faced by the company have become substantial and calls into question Prokon’s ability to maintain interest payments due to remaining investors.
Dr. Benno A. Packi, attorney-at-law at the Berlin offices of the law firm v. Boetticher Hasse Lohmann, offers expert legal advice to investors who need guidance in securing their investment, either prior to or during insolvency proceedings. Dr. Packi is a specialist in financing and capital markets law, working with both retail and institutional investors. If you have been affected by the potential Prokon insolvency and would like to discuss the matter, Dr. Packi can be contacted at investment [at] packi.eu.