Prokon files for insolvency

German wind operator and financier Prokon has filed for insolvency at a local court in Itzehoe, northern Germany.

The move comes as only some 40,000 out of 75,000 of the company's investors had adhered to a call by Prokon not to sell securities in the company to avert an insolvency.

The court has named Mr. Dr. Penzlin as temporary insolvency administrator.

Prokon claims to operate 54 wind parks with a total of 314 turbines in Germany and Poland. It has also been developing its own 3MW wind turbine, the P3000.

Prokon says that as of end-October 2013, it has accumulated a loss of €209.9m ($286.7m). In order to avert the impending insolvency, the company had been urging its investors to keep their securities.

Only if at least 95% of investors had kept their profit-participation certificates until 31 October this year an insolvency would have been avoided, Prokon had said earlier.

Prokon was sharply criticised in the German media for having marketed the certificates with an unrealistically high interest rate of 6%, while telling investors that those are as secure as a savings account.