Curated News
By: NewsRamp Editorial Staff
September 23, 2025
SOWITEC Calls Emergency Bond Meeting Amid Liquidity Crisis
TLDR
- Bondholders can gain a 0.5% participation fee and influence SOWITEC's restructuring by voting at the October 8 meeting to secure their investment position.
- SOWITEC requires a 25% quorum at the second bondholders meeting on October 8 to approve deferring a €2.29 million repayment until May 2026 while maintaining 8% interest payments.
- Successful bondholder participation helps SOWITEC maintain operations and continue renewable energy development, supporting Germany's transition to sustainable power generation.
- SOWITEC offers bondholders a financial incentive to attend their October meeting while negotiating an 80 MW German portfolio sale to fund future repayments.
Impact - Why it Matters
This development matters because it highlights the financial vulnerabilities facing renewable energy companies in the current economic environment. SOWITEC's situation serves as a cautionary tale for investors in green energy bonds, demonstrating how even established players can face liquidity challenges. The outcome will set precedents for how bondholder meetings handle financial distress in the renewable sector, potentially influencing future investment decisions in sustainable energy projects. For current bondholders, the company's ability to navigate this crisis directly impacts their investment recovery, while the broader renewable energy market watches closely as SOWITEC's handling of this situation could affect investor confidence in similar green energy financing instruments across Europe.
Summary
German renewable energy company SoWiTec group GmbH (SOWITEC) faces a critical juncture as it navigates financial challenges surrounding its 2018/2026 bond (ISIN: DE000A2NBZ21). The company's initial attempt to conduct voting without a meeting failed to achieve the required 50% quorum, with only 12.18% participation from bondholders. This setback has prompted SOWITEC to schedule a second bondholders' meeting on October 8, 2025, in Sonnenbühl, Germany, where a lower quorum threshold of 25% will apply. The company is actively encouraging bondholder participation through financial incentives, offering a 0.5% participation fee (minimum €75 per deposit) for those who attend the physical meeting, though payment is contingent on reaching the necessary quorum and successful implementation of resolutions.
The urgency stems from SOWITEC's precarious liquidity situation, which has decreased significantly to just €0.4 million as of December 2024, though it improved slightly to €1.4 million by July 2025. The company is currently in advanced negotiations to sell an 80 MW partial portfolio in Germany, with proceeds intended to partially repay the bond due November 8, 2025. However, potential delays in this sale could trigger a liquidity crisis. The proposed resolutions, developed in collaboration with SdK Schutzgemeinschaft der Kapitalanleger e.V., seek to defer a €2.29 million partial repayment by six months to May 2026 while waiving termination rights for non-payment. Importantly, the €0.4 million interest payment due in November will be paid in full regardless of the meeting's outcome. Bondholders can access meeting details through the German Federal Gazette and the company's investor website, which serves as the primary information hub for this critical financial restructuring effort.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, SOWITEC Calls Emergency Bond Meeting Amid Liquidity Crisis
