Bloomberg News

KanAm Fund, Portsmouth, Solar Millennium, Inprombank: Bankruptcy

March 02, 2012

KanAm Grund KAG will liquidate its 3.92 billion-euro ($5.2 billion) Grundinvest Fund (KANGRND), making it the largest German mutual property fund to be wound up, after failing to raise enough money to meet investor withdrawals.

Grundinvest, which suspended redemptions in May 2010, had two years to sell assets and raise sufficient cash to return to investors. The fund will now be liquidated and money returned by the end of 2016, Frankfurt-based asset manager KanAm said in a statement Feb. 29.

The liquidation “leaves little doubt that German open- ended fund disposal activity will accelerate in the mid-term,” said Iryna Pylypchuk, an associate director of research at property adviser CBRE Group Inc.

KanAm cited Europe’s sovereign-debt crisis and concern among German savers about investment in the country’s mutual property funds for its inability to reopen Grundinvest. Since closing, the fund sold or agreed to sell 1 billion euros of property in Canada, Europe and the U.S. It owns 51 properties in nine countries with an estimated value of 6.3 billion euros, according to the statement.

German Luxury Hotel Used for G8 Meeting Files for Insolvency

The luxury hotel on Germany’s Baltic Sea coast used for the Group of Eight meeting in 2007 filed for insolvency after failing to attract new investors for an overhaul.

The owner of the Grand Hotel Heiligendamm, which has more than 200 rooms, can no longer pay the interest on its loans, Fundus-Gruppe said in a statement on its website Feb. 28. Fundus-Gruppe controls Grand Hotel Heiligendamm GmbH & Co. KG, or Fonds KG, which filed with the district court in Aachen, Germany, the statement showed.

Heiligendamm, 23 kilometers (14 miles) west of the city of Rostock in eastern Germany, is the country’s oldest seaside health resort dating from 1793, according to its website. World leaders including Angela Merkel, George W. Bush, Vladimir Putin and Tony Blair stayed there during the G8 meeting in 2007.

Portsmouth May Not Be Able to Finish Season, Administrator Says

English soccer club Portsmouth, which entered administration last month for the second time in two years, may not be able to finish the season, the administrator for the second-tier team said.

Portsmouth won’t get any league funding, including 2.2 million pounds ($3.5 million) from the Premier League in so- called parachute payments, because the money would go straight to a former owner, administrator Trevor Birch said in a statement.

“We had previously stated that there was a real danger of the club running out of cash before the end of the season,” Birch said. “The risk of this happening increases substantially without the money from the football authorities. Unless something significant happens, there is a real possibility that we may not be able to fulfill the season’s fixtures.”

Birch said lawyers will challenge the parachute payment arrangement, which was made by the team’s former owners. Clubs receive the payments for four years after being relegated from the Premier League. Portsmouth dropped to the second-tier Championship following the 2009-10 season.

Solar Millennium Continues Investor Search Amid Insolvency

Solar Millennium AG (S2M)’s insolvency proceedings were opened by a German court on Feb. 28 as the search for an investor for the German solar-power developer continues.

Volker Boehm, the insolvency administrator appointed by the local court in Fuerth, sees opportunities to find a buyer for the company’s Flagsol GmbH unit and some of its projects in Spain, mainly the Arenales solar-thermal power plant, Solar Millennium said in a statement. It fired its remaining 40 employees, it said.

While some investors are interested in taking over Solar Millennium as a whole, the prospects of such a deal “are highly uncertain,” it said.

Solar Millennium said Feb. 6 it sold 2.25 gigawatts of U.S. projects to Solarhybrid AG. (SHL) The Erlangen-based company filed for insolvency on Dec. 21, citing slow progress in selling its U.S. assets and failure to reach an agreement on bringing in investors for its Ibersol venture in Spain.

The first creditors’ meeting is scheduled to take place May 15, Solar Millennium said.

Ukraine Will Liquidate Lender Inprombank, Central Bank Says

Ukraine’s central bank will revoke the banking license held by PAT Innovatsiyno Promyslovyi Bank, or Inprombank, and begin liquidation proceedings.

The central bank appointed Oleksiy Halaburda, the head of the bank supervision department, as the liquidator of the institution, the regulator said in a statement on its website today.

Petroplus’s Antwerp Refinery Has Potential Buyer, De Tijd Says

An unidentified potential buyer for Petroplus Holdings AG’s refinery in the Belgian port of Antwerp has emerged, De Tijd reported on its website, citing the court-appointed trustee for the refinery.

The trustee declined to disclose the identity of the possible buyer, according to the newspaper.

Elpida Credit-Default Swaps to Be Settled at Auction, ISDA Says

Elpida Memory Inc. (6665) credit-default swaps have been triggered by a bankruptcy credit event and will be settled at auction, according to the International Swaps & Derivatives Association.

-- With assistance by Simon Packard, Abigail Moses and Bob Bensch in London, Niklas Magnusson in Hamburg, Nariman Gizitdinov in Almaty, Kateryna Choursina in Kiev, Stefan Nicola in Berlin and John Martens in Brussels. Editor: Christopher Scinta

To contact the reporter on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@Bloomberg.net.


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