Conergy reaches agreement with banks - Ammer appointed for additional three months | Europe

Conergy reaches agreement with banks - Ammer appointed for additional three months
Hamburg based Conergy AG reached an agreement with its financing banks to extend its loans to the end of 2011. As such, the consortium of banks is continuing to support Conergy in the successful operational development. The company expects to return to an annual operating profit again this year. The loan was basically due on 31 July 2010. In addition, the parties have agreed to postpone payments of the three remaining instalments of the term loan, also to the end of 2011. This will enable the company to realise the growth targets it has set.

Together with the extension, the consortium of banks and the Conergy Management Board have agreed to assign an auditing company to carry out an independent business review. Should the review come to the conclusion that a follow-up financing beyond 31 December 2011 is unlikely to be agreed on without strengthening the company's capital basis, the co-operating parties will examine options for an adjustment of the liabilities side. Conergy and the banks have agreed that, in such a case, the term of the credit will be brought forward to 21 December 2010, as long as the banks do not waive this right. The debt-reduction strategy, if deemed necessary by this process, will then be adopted and implemented as soon as possible. All the relevant banks have already signalled their basic willingness to support a restructuring of the company's liabilities in such a case.

“The agreement underlines that our successful restructuring, which has been reflected in consistently improved operating results since the end of 2009, is also being recognised by our creditors. Conergy is back on track and we, just like our partner banks, are interested in working with a balance sheet structure which ensures a long-term, stable future for the company. If, in the opinion of the auditor, there is a necessity to strengthen our financing structure, we will take appropriate steps,” said CEO Dieter Ammer.

2009 financial statements and AGM
The consolidated and annual financial statements for 2009, which have not been audited due to the ongoing negotiations, will now be published along with the interim report on 12 August. This will also fulfil the requirements for issuing the invitation to the outstanding 2010 AGM, which is expected to be held beginning of October 2010.

Ammer appointed for additional three months
With effect of 1 August 2010, the appointment of Dieter Ammer as Member of the Management Board as well as Chairman of the Board was extended by additional three months until the end of 31 October 2010. One reason for this is that the Supervisory Board has asked Ammer to accompany the 2010 Annual General Meeting. In addition, a shareholder with a more than 25% stake in Conergy has proposed to elect him to the Supervisory Board. Should Supervisory Board and shareholders follow this proposal, Ammer will withdraw from the Management Board with the ending of the 2010 Annual General Meeting.

News posted on Friday 30th, Jul 2010