SOWITEC Calls Second Bondholder Meeting After Failed Vote, Faces Liquidity Pressure
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 it will hold a second bondholders' meeting on October 8, 2025, after an initial electronic voting process for its bond 2018/2026 failed to achieve the required quorum. The company reported that only 12.18% of the outstanding bond volume participated in the voting without a meeting, falling short of the 50% threshold needed for valid resolutions.
The German renewable energy company is offering bondholders a participation fee equal to 0.5% of the outstanding nominal value registered for the meeting, with a minimum of €75.00 per deposit, to encourage attendance at the physical meeting in Sonnenbühl. However, this payment is contingent on the meeting reaching the reduced quorum requirement of 25% and will only be distributed after the proposed resolutions are implemented. The form for applying for the participation fee is available for download on the company website https://investor.sowitec.com/de/.
SoWiTec's liquidity position has become increasingly constrained, with available funds decreasing by €3.1 million compared to the previous year to €0.4 million as of December 31, 2024. The company reported liquidity of €0.5 million as of June 30, 2025, and €1.4 million as of July 31, 2025. This financial pressure comes as the company faces a partial repayment of €2,290,200 due on November 8, 2025.
The company is currently in advanced negotiations to sell a partial portfolio of 80 MW in Germany, with the proceeds intended to finance the bond repayment. However, SOWITEC acknowledges that any delay in concluding this sale could result in a liquidity shortage. The invitation for the second bondholders' meeting was published in the German Federal Gazette and on the company website https://investor.sowitec.com/de/.
The proposed resolutions, which remain unchanged from the failed electronic vote and were agreed upon with investor protection group SdK Schutzgemeinschaft der Kapitalanleger e.V., include deferring the November 2025 partial repayment by six months to May 8, 2026, and waiving termination rights related to the non-payment. The company emphasized that the 8% interest payment of approximately €0.4 million due on November 8, 2025, is not subject to these resolutions and will be paid in full and on time.
This development highlights the challenges facing renewable energy companies in managing debt obligations amid market transitions. The outcome of the bondholder meeting could have significant implications for SOWITEC's ability to navigate its current liquidity constraints and maintain operations while pursuing its asset sale strategy. Bondholders' participation in the October meeting will be critical in determining the company's short-term financial stability and its capacity to meet upcoming obligations without triggering default scenarios.
Curated from NewMediaWire
