Several months after Solar Millennium AG declared itself bankrupt in Germany, the company's subsidiary in the USA has now registered its insolvency.
The main explanation for the move is the bankruptcy of the German company Solarhybrid AG, which wanted to take over Solar Millennium's American projects. Using the procedures according to "Chapter 11", the American insolvency legislation, the insolvency administrator for Solar Millennium AG, Volker Böhm, wants to make possible an orderly sales process for the American projects. "The Chapter 11 proceedings make it possible for further interested parties to inform themselves about the projects and to make offers for them in a public bidding process", explains Böhm. The sale of the projects would bring in some urgently needed cash for Solar Millennium. In addition to the actual proceeds of the sales, a bank guarantee deposited in cash would be released.
At the same time, Solar Millennium announced that its former Chairman Utz Claasen is suing the company for compensation of US$ 265 million. The background to this is alleged reputation-damaging statements made by Solar Millennium about Claasen. He claims that these have prevented him from taking up an adequate position of employment since leaving the Erlangen-based company.
Is unlikely, however, that Claasen will ever see any of this money. Even if he wins the case, he will have to join a long queue of other creditors. It is also questionable whether the US lawsuit has any validity under German law.