FRANKFURT Jan 11 German wind park operator
Prokon has warned that it may have to file for insolvency if it
is unable to strike a deal with investors who bought its
"If we do not succeed - together with you, our investors -
to stabilise the liquidity position very quickly, we will likely
be obliged to initiate a self-administered insolvency plan at
the end of January," Prokon said on its website on Saturday.
Prokon, which said it had lost 210 million euros ($287
million) as of October 2013, is urging about 75,000 investors
holding certificates worth 1.4 billion euros not to cancel these
Profit-participation certificates offer high coupon payments
- at least six percent in Prokon's case - but also account for
losses of a company. Unlike shares, the securities do not give
holders any say in the company.
"We have to make clear that the harum-scarum cancellations
are bringing us into distress," the company said, adding that
after repaying investors 130 million euros in 2013 it had
received further cancellations worth 150 million due in January
and February - a sum that it could not pay back on time.
German retail investor lobby group SdK on Saturday rejected
widespread media characterisation of Prokon's business model as
a Ponzi scheme.
SdK said the company's remaining assets would likely suffice
to repay a large amount of the money owned to investors in a
Prokon operates 50 wind parks in Germany and Poland and
employs roughly 1300 staff.
($1 = 0.7314 euros)
(Reporting by Arno Schuetze; Editing by Toby Chopra)