Solarnative GmbH Files for Insolvency Just Months After Bond Issue

In a surprising turn of events, Solarnative GmbH, a German greentech company, filed for insolvency just three months after issuing its bond. This rapid transition has raised concerns about the company's organizational and financial practices, as well as those of its underwriters, One Square Financial Engineers and Heuking.

The bond, which offered an interest rate of up to 12.25% per annum, managed to secure only EUR 1.24 million. The company's management was disappointed, expecting to use the funds to scale production and enhance liquidity reserves. Dr. Julian Mattheis, Managing Director, had earlier assured that the bond repayments and interest payments were secured by initial liquidity cushions and operating cash flows.

Lawyer Dr. Wolfgang Schirp criticized the prospectus for being vague and not defining a minimum placement amount. He pointed out that this is not the first time bonds issued by One Square and Heuking have led to quick insolvencies. Dr. Schirp emphasized the need for more careful and responsible practices in bond issuance to protect small investors.