SOWITEC Calls Second Bondholder Meeting Amid Liquidity Concerns
SOWITEC group GmbH is convening a second bondholder meeting to seek approval for deferring a €2.3 million repayment due in November 2025, as the company faces liquidity challenges with only €1.4 million available as of July 2025.
SOWITEC group GmbH has announced it will hold a second bondholders' meeting on October 8, 2025, after an initial electronic voting process failed to achieve the required quorum. The previous attempt to pass critical resolutions regarding the company's 2018/2026 bond attracted participation from only 12.18% of bondholders, falling short of the 50% threshold needed for validation.
The German renewable energy company is seeking bondholder approval to defer a €2.29 million partial repayment originally due on November 8, 2025, by six months to May 8, 2026. This measure is part of a broader strategy to manage the company's tight liquidity situation, which saw available funds drop to €0.4 million as of December 31, 2024, before recovering to €1.4 million by July 31, 2025. The company has emphasized that the €0.4 million interest payment due in November remains unaffected by the proposed changes and will be paid in full.
To encourage participation in the physical meeting in Sonnenbühl, Germany, SOWITEC is offering bondholders a participation fee equivalent to 0.5% of their outstanding nominal value, with a minimum payment of €75 per deposit. However, this incentive is contingent on the meeting achieving the reduced quorum requirement of 25% and the subsequent implementation of the resolutions. The invitation and related documents are available on the company's investor relations website at https://investor.sowitec.com/de/.
The company's liquidity challenges come despite ongoing advanced negotiations to sell an 80 MW partial portfolio of German assets. Proceeds from this potential sale are intended to help finance the bond repayment. However, SOWITEC has warned that any delays in finalizing the transaction could exacerbate its financial strain. The proposed resolutions, developed in consultation with shareholder advocacy group SdK Schutzgemeinschaft der Kapitalanleger e.V., also include waivers on termination rights related to the deferred payment and authorization for the joint representative to manage temporary waivers.
This development highlights the financial pressures facing renewable energy developers in current market conditions and underscores the importance of bondholder cooperation in navigating corporate liquidity challenges. The outcome of the October meeting could significantly impact SOWITEC's ability to manage its debt obligations while continuing operations.