SOWITEC Calls Second Bondholders' Meeting After Failed Vote, Offers Participation Incentive
TL;DR
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.
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SOWITEC group GmbH has announced that the voting without a meeting regarding the bond 2018/2026 did not achieve the required quorum of 50% of the outstanding bond volume, with participation reaching only 12.18%. This outcome necessitates a second bondholders' meeting, scheduled for October 8, 2025, to be held as a physical gathering in Sonnenbühl. The official invitation was published in the German Federal Gazette and on the company website https://investor.sowitec.com/de/.
The company expressed gratitude to bondholders who participated in the initial electronic vote and is now urging all holders of the bond 2018/2026 to actively engage in the second meeting. For this meeting, a lower quorum threshold of 25% of the outstanding bond volume is required to implement the proposed measures. To encourage participation, SOWITEC will reimburse attending bondholders an amount equal to 0.5% of their registered nominal value, with a minimum payment of €75.00 per deposit. However, this participation fee is contingent upon the meeting achieving the 25% quorum and will only be disbursed after the resolutions are implemented. The application form for this fee is available for download on the company website https://investor.sowitec.com/de/.
The urgency behind these meetings stems from SOWITEC's current financial situation. The company is in advanced negotiations to sell a partial portfolio of 80 MW in Germany, with proceeds intended to finance the partial repayment of the bond due on November 8, 2025. However, should the sale be delayed, SOWITEC faces a potential liquidity shortage. The company's liquidity has been under pressure, decreasing by €3.1 million year-over-year to €0.4 million as of December 31, 2024. While it improved to €0.5 million by June 30, 2025, and €1.4 million by July 31, 2025, the figures remain tight. The proposed resolutions, developed in agreement with SdK Schutzgemeinschaft der Kapitalanleger e.V., aim to mitigate this risk by deferring the €2,290,200 partial repayment due in November 2025 by six months to May 8, 2026, and waiving termination rights related to the non-payment. It is important to note that the 8% interest payment of approximately €0.4 million due on November 8, 2025, is not included in these proposals and is scheduled to be paid in full and on time.
This development is significant for bondholders and the renewable energy sector as it highlights the financial challenges even established companies can face. The outcome of the October meeting will directly impact SOWITEC's ability to manage its debt obligations and continue operations, serving as a critical test of creditor confidence. For the industry, it underscores the importance of robust financial planning and transparent communication between companies and their investors, especially in capital-intensive fields like renewable energy development.
Curated from NewMediaWire
