Conergy banks support restructuring concept, pledge €240 million in follow-up financing

By Caroline Salls

Pittsburgh, Feb. 6 - Conergy AG received pledges Wednesday from Commerzbank AG and Dresdner Kleinwort for €240 million in follow-up financing after Conergy experienced a liquidity "bottleneck" in November, according to a Conergy news release.

Conergy said it will repay the follow-up financing by carrying out a €250 million capital increase in 2008.

The financial requirements can also be reduced through a reduction of working capital or through proceeds from the sale of discontinued operations, the release said.

The company said third parties have provided security for roughly 50% of the capital increase through firm equity commitment letters or firm underwritings.

Conergy said the new financing will replace a €30 million credit line it obtained in November, which has not been used, and it will be used for liquidity requirements, necessary investments, the early purchase of materials for a solar energy factory in Frankfurt and to finance projects of its Epuron GmbH subsidiary.

The company's financial covenants have also been suspended for fiscal year 2008.

Conergy said it has commissioned an accountancy firm to draw up an expert opinion on the restructuring concept put forward by its board of management, and the continuation of the follow-up financing is subject to the firm delivering a positive verdict by mid-February.

The company said the accountancy firm has confirmed that it expects to issue a positive verdict.

Conergy is a Hamburg, Germany, solar power company.

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