Econcern files for court protection

Wednesday 27 May 2009

Green energy company Econcern has applied for court protection from creditors after failing to find a solution to its financing problems, the company said in a statement.

The company said it had not managed to reach a deal with shareholders and the banks after its credit facility expired on April 1.

The Financieele Dagblad says German energy giant RWE has decided not to make a bid to take over the company after an 'initial look at its financial structure'. Dutch energy firm Eneco is 'still' looking at the options, the paper says.

Econcern is primarily known in the Netherlands for its windpark off the coast of IJmuiden. The company has a workforce of some 1,400 and operates in 24 countries.

Restart

Sources told the FD there was still good hope for a restart. 'If a good receiver is found and if there is enough time then large chunks of the company could be continued,' one said.

Head of operational affairs Cees van Stejn says in an interview with Wednesday's Volkskrant the company had tried to do too much too quickly.

'The company, in its enthusiasm, started up far too many activities, which needed an enormous amount of money,' he said. 'Then came the crisis. We actually wanted to borrow more than we had but from one day to the other, in October 2008, the banks called a halt. It was all too much.'

© DutchNews.nl

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