Prokon may face insolvency

German wind operator Prokon said it may have to file for insolvency by the end of January if its investors sell securities in the company that have been the subject of controversy in the national media.

“If we do not succeed – together with you, our investors – to stabilise the liquidity position very fast, we will probably be legally obliged to start insolvency procedures due to an impending inability to pay (our debt)," the company says on its website.

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 is urging its investors to keep their securities.

At least 95% of investors need to keep their profit-participation certificates at least until 31 October this year to avoid insolvency, Prokon says. The company had sold the certificates to 75,000 small investors.

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.

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