Having struggled with restructuring and debt loadings, Conergy has further plans to strengthen financial position. Under a new agreement with creditors, Conergy's debt will be reduced by €188 million. Conergy also wants to reduce capital stock from approximately €400 million to about €50 million, while seeking a subsequent capital increase of up to €188 million with subscription rights for shareholders and all subject to the approval of a general meeting.
According to Conergy, it would use the proceeds to reduce its existing lines of credit by a corresponding amount. If the subscription rights are not exercised, several creditors have pledged to contribute their loan receivables from Conergy as a non-cash contribution. In both cases, Conergy AG's debt will be reduced by as much as 60%, significantly improving its ability to operate.