“The final days of RWE”
Germany’s largest power producer RWE teeters on the brink of bankruptcy, writes Sebastian Balzter in Frankfurter Allgemeine Sonntagszeitung. The utility urgently needs cash to pay for the nuclear exit. If the sale of the renewable subsidiary “Innogy” on the stock market later this year goes wrong, RWE is “a case for an insolvency administrator”, according to Balzter. The repercussions of the Brexit vote could push the utility over the edge because it earns a substantial part of sales in Britain, writes Balzter. “Given the dangerous situation, some insolvency administrators already keep a watch on RWE, confirms a sector insider […] It would be the largest bankruptcy in German economic history.” But sector specialist Georg Erdmann, from Berlin technical university, told the author he believed the government would step in to prevent RWE’s bankruptcy.
For background, read the CLEW factsheet RWE’s plans for new renewable subsidiary.