Dutch energy firm Econcern files for receivership

Tue May 26, 2009 11:37am EDT

Related Topics

* Econcern fails to find refinancing solution

* Negotiating with interested parties about company's future

AMSTERDAM May 26 (Reuters) - Dutch-based sustainable energy company Econcern said on Tuesday it had filed for voluntary receivership after it failed in a bid to secure refinancing.

"Suspension of payments allows the board of Econcern more time to secure a financing solution and negotiate options for the future of the company with interested parties," Econcern said in a statement on its Website. The company, which had been aiming for an initial public offering between 2010 and 2012, said in April it would cut 200 jobs as it was feeling the impact of the credit crisis and the economic recession. Currently, it employs 1,200 people, Econcern's Web site said.

A spokeswoman declined to give details about the size of the loan facility it was negotiating.

Dutch utility Essent, which German peer RWE (RWEG.DE) wants to buy, and Dutch utility Eneco were considering taking over Econcern, Dutch daily Het Financieele Dagblad reported on Saturday.

The firm said last year it aimed to increase net profit more than tenfold to 1 billion euros ($1.4 billion) on revenues of 8 billion euros by 2012.

To achieve this it planned to invest 10 to 12 billion euros in projects using solar, wind and other sustainable resources.

Dutch Rabobank [RABN.UL], British Aviva (AV.L) unit Delta Lloyd and privately-owned Dutch investment firm SHV last year invested 300 million euros in Econcern to boost growth. ($1=.7158 Euro) (Reporting by Harro ten Wolde; Editing by Rupert Winchester)

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