Solar Millennium AG files for opening of insolvency proceedings, says 'certain conditions' for agreements in negotiating sale of U.S. solar pipeline have not been met

Tracy McDonald

ERLANGEN, Germany , December 21, 2011 (press release) – Today, Solar Millennium AG (ISIN DE0007218406), Erlangen, has filed for the opening of insolvency proceedings at the district court in Fuerth.

Already since September, the Company has been in a very advanced state of negotiations on the sale of its US pipeline. Agreement exists to a large extend on this transaction; substantial contracts have already been signed. However, certain conditions for the effectiveness of the agreements have not yet been met. A binding confirmation on the amount and time of the cash flows could not be obtained until last. In addition, intensive negotiations with investors on the entrance into the project Ibersol could not be finalised. Both transactions would have generated funds beyond the current need for liquidity which would have laid the foundation for a further development of the Company.

The Management Board and the Supervisory Board deeply regret this development. In their effort to save existing assets for the shareholders and the creditors of the Company, the Company Bodies felt impelled to take this step.

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