Windreich GmbH

Statement of the insolvency administrator regarding today’s Finance Online article

Dear Mr Hedtstück,

The Finance Online article published on 5 August 2014 could create the impression that the insolvency proceedings involving Windreich GmbH and the optimum realisation of the MEG 1 and GT 1 projects come down to a battle between Mr Balz and Mr Blümle, and that the main question is which of them will ultimately prevail.

This is certainly not the case. Optimum realisation of the projects is in everyone’s interests, as Mr Blümle made clear in the most recent press release. It is also not that case that Mr Balz has only now returned to active involvement in the marketing of the projects. In fact, Mr Balz was previously explicitly informed that he could independently present potential buyers at any time, providing evidence of their intention to buy. Mr Balz himself states that he was already in constant discussion with possible investors, whom he is attempting to interest in the protects, well before and immediately after the insolvency application. His efforts in this regard run in parallel with those of the insolvency administrator. Unfortunately, neither side has received a specific and feasible offer as yet. “It would be gratifying for all Windreich GmbH creditors if Mr Balz were successful in bringing his discussions with investors to a favourable conclusion,” says Mr Blümle. “I will not do anything to stand in his way.” In parallel with this, Windreich is continuing its search for investors. Here, the interests of Mr Balz and Mr Blümle are in tandem and not in competition. “I expressly welcome Mr Balz’s efforts to secure investors. This complements the efforts to ensure that the offshore projects are realised in an optimum manner.” Various market assessments do not preclude this. The aim is to achieve the best possible outcome.

As regards Mr Balz’s so-called “insolvency plan”, here again it is not a question of a choice between continuation of the business with Mr Balz on the one hand and liquidation by Mr Blümle on the other. On the contrary: Mr Blümle has repeatedly advocated continuation of the company’s business projects. This is also supported by the fact that Mr Blümle has indeed continued operations from the date of submission of the insolvency application up to now. “Unfortunately, however, an insolvency plan is no panacea for Windreich if it is based only on projected valuations and is not underpinned by specific offers that withstand scrutiny,” explains Blümle. Only if feasible offers for the MEG 1 and GT 1 projects were received would there be a genuine basis for preparation of an insolvency plan for Windreich. In this regard, Mr Balz and Mr Blümle do not need to “iron out their differences”, as here too their interests are aligned. In seeking to ensure optimum realisation of the projects as a basis for continuation of business, they are both pursuing the same objective. “However, in my capacity as insolvency administrator, I am required to reach decisions based on objective factors and not merely forecasts. In this respect I cannot set to work on the basis of Mr Balz’s boundless optimism alone, and must not raise expectations that subsequently turn out to be impossible to fulfil.”

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Statement of the insolvency administrator regarding Willi Balz’s letter of 13 June 2014

Dear bondholders and creditors of Windreich GmbH

Last Friday, Windreich founder Willi Balz again wrote to the creditors and bondholders of Windreich GmbH. In his letter, Mr Balz gave the impression that statements made in the letter had been coordinated with insolvency administrator Holger Blümle of Schultze & Braun and that Mr Blümle had consented to the distribution of the letter to all creditors. Mr Blümle and the bondholders’ collective representatives Frank Günther and Klaus Nieding today clarify that “Neither the letter, its content nor its distribution to all creditors were coordinated with us”.

Mr Blümle and the collective representatives also explicitly state that the letter reflected the personal opinions of Willi Balz only; the insolvency administrator and the collective representatives wish to distance themselves from these opinions. Creditors and bondholders will receive further information from the insolvency administrator and the collective representatives regarding the status of the insolvency proceedings and any developments over the coming weeks.

Yours faithfully
Holger Blümle, Insolvency Administrator

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Clarification by the insolvency administrator dated 14 May 2014 regarding reports by Bloomberg News

Dear Windreich GmbH bondholders

On 9 and 12 May 2014, the news agency Bloomberg News published two short items supposedly giving details of discussions between a number of potential investors in the MEG 1 offshore project and the insolvency administrator and Windreich GmbH. Bloomberg refers to unnamed individuals associated with the negotiations, as well as several potential stakeholders, as sources of the information.

The insolvency administration team notes press reports of this kind with concern, as they are detrimental to the progress of negotiations. All parties have agreed to hold the negotiations in the strictest confidence. We wish to stress, therefore, that the information provided to Bloomberg did not come from us. In fact, on Friday last week, we declined to make any comment regarding the negotiations when requested by Bloomberg, citing the agreement on confidentiality.

We are sorry if these two reports gave any of you the impression that negotiations regarding the sale of the key offshore project MEG 1 were now complete.

The truth is that intensive discussions aimed at securing both the necessary equity and debt financing for MEG 1 are continuing as before. While we are unable to forecast with any degree of certainty when these discussions might be concluded, their conclusion is not imminent, as may have been implied by the report.

However, the insolvency administration team remains confident that matters will be brought to a successful conclusion over the coming months. Naturally we will keep you updated on any progress.

Yours faithfully
Holger Blümle, Insolvency Administrator

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More updates from the insolvency administrator

Press releases

Press release dated 22 June 2015
Windreich and DEME establish joint venture for implementation of MEG I offshore wind farm – Project renamed Merkur Offshore

Press release dated 09 June 2015
Insolvency administrator looking into accusations

Press release dated 29 September 2014
Self-appointment of Willi Balz as managing director of Windreich GmbH does not affect insolvency proceedings

Press release dated 25 November 2013
Windreich insolvency transitions to standard proceedings

Press release dated 18 September 2013
Windreich GmbH presses ahead with MEG I offshore project

Press release dated 13 September 2013
Windreich subsidiary WKU files for insolvency

Press release dated 9 September 2013
Wind energy pioneer Willi Balz clears the way for Windreich restructuring

Court orders


Standard forms


FAQ for bondholders on electing a collective representative

FAQ for bondholders