- The energy-autonomous electricity service provider files for insolvency according to German Law and plans sustainable restructuring in the course of preliminary insolvency proceedings
- The company´s business continues without restriction
- Salaries are secured through insolvency payments until the end of May 2019
- Goal: Long-term future solution through sustainable restructuring process
Berlin, April 1, 2019. The energy-autonomous energy service provider Solarkiosk AG filed for insolvency on March 28, 2019 at the District Court of Charlottenburg. With this measure the company which specializes in solar energy solutions in off-grid areas, enabling climate-neutral and autonomous energy supply, among others in in rural areas of Africa, wants to achieve a complete restructuring within insolvency proceedings according to German Law. The district court Charlottenburg appointed attorney at Law Dr. Rainer Eckert, founder and partner of ECKERT lawyers, as the provisional insolvency administrator.
Solarkiosk AG has realized more than 250 projects in thirteen countries worldwide, which currently provide solar products and services, along with food, water and other sustainable products to approx. five million people, especially in rural, structurally weak areas. The solar-powered technology solution, the “E-HUBB”, is the core technology solution that provides energy to all off-grid, rural villages in which SOLARKIOSK is active, as it is not just a solar powered shop, but offers a variety of important services such as charging cell phones, internet connection, cooling of products and vaccines, water treatment, as well providing power for small local, i.a. hairdresser, tailor, restaurant, cinema, etc.
The business operations continue
“Together with my team, I will do the utmost to ensure the continuation of the company that has an important task for developing countries worldwide and to secure jobs. In principle, I see good chances because fortunately SOLARKIOSK has very good products as well as highly motivated employees and in addition to that a worldwide sales network and promising strategic partnerships,” says Rainer Eckert. The business operations will be fully maintained. The payments of the wages and salaries of the approximately 20 employees in Berlin are secured by the insolvency payments from the Federal Employment Agency until the end of May 2019.
Positive signals
The provisional insolvency administrator will now work on achieving a sustainable restructure of the company. “As difficult as this step was for us, the entire process is now a great opportunity to make Solarkiosk fit for the future,” says founder and CEO Andreas Spiess. “Furthermore, we very much hope that our partners will support us and new investors will recognize the attractive and unique business idea behind Solarkiosk. So I’m looking forward to the coming months with confidence.”
Causes of crisis
Solarkiosk AG had to go the way of restructuring under the rules of ordinary insolvency proceedings, because a firm commitment from an external investor at the last moment fell through, and immediate bridge financing until the entry of new investors could not be realized in a short span of time. Additionally, the company could not reach agreements with their main creditors in regards to due payments.
Sustainable restructuring sought
“My goal is to stabilize Solarkiosk as well as possible in the preliminary proceedings. It is now a question of achieving a sustainable future solution in this growth market in which Solarkiosk is positioned with a unique and unrivalled business model,” says the provisional insolvency administrator, Eckert. After a first, fundamental analysis, he will determine all the necessary restructuring measures. Subsequently, these will be implemented step by step to successfully position Solarkiosk on the market in the long term. Among others options, there is the possibility of a restructuring by transfer to an investor.
About ECKERT Lawyers
ECKERT, with offices in Hannover and Berlin, is one of the leading German restructuring and insolvency law firms. ECKERT are both corporate advisers and insolvency administrators and was in charge of the reorganization of well-known companies such as AEG, Blaupunkt, Mäc-Geiz, Netrada or Westfalia. At present, founding partner Dr. Rainer Eckert has been appointed as insolvency administrator in insolvency proceedings within the Air Berlin Group. Eckert´s team consists of approx. 120 people of which 20 are lawyers.
About Solarkiosk AG
SOLARKIOSK has developed an award winning solar-powered technology design – the “E-HUBB” -, designed for use in off-grid areas worldwide. SOLARKIOSK currently operates approximately 200 of these E-HUBBs, intertwined with an inclusive business model, via its own subsidiaries in Ethiopia, Kenya, Tanzania, Rwanda and Ghana. SOLARKIOSK currently reaches approx. 5mio people in rural and underdeveloped areas in Africa and Asia, with tailored products and services distributed via the E-HUBBs. In addition, SOLARKIOSK together with its partners have implemented approx. 50 E-HUBBs worldwide for humanitarian missions, particularly as mobile hospitals and school in refugee camps, as well as solar powered retail outlets.
Media Contact:
CONSILIUM Rechtskommunikation GmbH, Herr RA Martin Wohlrabe Mauerstraße 83 10117 Berlin +49 30 20 91 29 70
post@consilium.media
www.consilium.media