CR Energy AG Faces Imminent Insolvency Proceedings

CR Energy AG (CRE) has announced that it anticipates initiating insolvency proceedings in the coming days. This development is attributed to lenders' hesitation to provide working capital loans, compounded by current market challenges. Despite this, CRE assures that ongoing projects by subsidiaries Terrabau and Solartec are expected to proceed unaffected.

The announcement comes as a surprise, given CRE's reported 98% equity ratio at the holding level in its H1/24 results. This high figure raises questions about the reasons behind the insolvency situation, with potential issues at the subsidiary level being speculated upon. Meanwhile, the company’s audited 2024 report remains unpublished.

First Berlin Equity Research has responded by retracting its previous price target of €12 and placing CRE under review, moving from its earlier 'Buy' recommendation. The investment community awaits further insights into the unfolding situation.