Germany

Germany

Windreich gets more time to start MEG 1

GERMANY: Troubled Windreich has been another 22 months before construction must begin under its construction permit for the 400MW MEG 1 offshore project In the German North Sea.

Windreich's MEG 1 9,000 ton converter platform DolWin alpha
Windreich's MEG 1 9,000 ton converter platform DolWin alpha

The new clause in the consent document states that project approval will expire unless construction activities have been started by 26 February 2016. The original permit, granted in 2009, had set the deadline at 30 April 2014.

Developer Windreich has been keen to stress that it still plans to push ahead with the project north of the island of Borkum in the North Sea despite entering into insolvency last September.

The extension of the deadline for construction to start will allow the company more time to get its finances in order. Insolvency administrator Holger Blume said that talks are ongoing to secure equity and debt finance for the project, but financial close is not "imminent" as has been reported in the German press.

In a letter to Windreich bondholders in October, the company's CEO, Werner Heer, stated he is "working intensively on pushing ahead with [the] 400MW MEG 1 project, in order to harvest the fruits of years of preliminary investments".

Windreich reported in August that it had so far invested EUR 119 million in the project and "constructive talks" have recently been held with suppliers, potential investors and the banks involved.

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