German power company EnBW has moved closer to buying former domestic wind farm operator Prokon. The company made headlines globally last year when it went bust after promising too much to investors.
Germany's third-largest utility company, EnBW, saw its chances for a takeover of insolvent wind farm operator Prokon rise dramatically on Tuesday as the main creditors of the bust renewables company made it clear they preferred EnBW's half-billion-euro ($562,000) bid over a lower offer from solar farm operator Capital Stage.
EnBW hastened to add that the final word would be spoken at a July meeting of all of Prokon's nearly 100,000 creditors.
Prokon made headlines last year when it went bankrupt on the back of a corporate strategy gone awry.
The company had lured investors with aggressive ad campaigns on prime-time television, in buses and commuter trains. It had hoped German government support of the renewable energy sector combined with low interest rates elsewhere in the market would suck in investors.
Prokon, which operated 50 wind parks in Germany and neighboring Poland, had raised 1.4 billion euros by touting profit participation rights and promises of returns of at least 6 percent annually.
But following questions by the media about the generous yields on capital and whether those were backed by actual earnings, investors pulled out in droves,pushing Prokon over the edge
Karlsruhe-based EnBW said Tuesday that acquiring Prokon would fit into its drive to leave its nuclear energy age behind and move swiftly towards renewables.
hg/cjc (Reuters, dpa)