* Prokon had raised 1.4 bln euros from retail investors
* Warned last week of potential insolvency
* Prokon operates 50 wind parks in Germany and Poland
(Rewrites, adds detail, background)
FRANKFURT, Jan 22 German wind park group Prokon,
which had raised 1.4 billion euros ($1.9 billion) mainly from
retail investors, has filed for insolvency, a court in the north
German town of Itzehoe saidon Wednesday.
An administrator has been appointed for Prokon Regenerative
Energien GmbH, the court said in a statement.
The company, which operates 50 wind parks in Germany and
Poland and employs roughly 1,300 staff, had raised money by
selling so-called profit-participation certificates which were
marketed to investors through advertising campaigns on German
Profit-participation certificates offer high interest
payments but the investor also participates in the losses of a
company. Unlike shares, the securities do not give holders any
say in the company.
Consumer groups accused Prokon of attracting investors with
promises of possible returns of at least 6 percent a year
without giving sufficient warning of the risks.
An increasing number of investors had asked for their money
back, following German media reprots that questioned whether
Prokon's pay-outs were backed by actual profits.
The company had said in reaction that it had a viable
business model but warned last week that it might have to file
for insolvency as too many investors were demanding their money
(Reporting by Alexander Huebner; Writing by Harro ten Wolde;
Editing by Greg Mahlich)