Creditors Begin Enforcement Against Sun Investment Group’s Polish Solar Project

Lithuanian renewable energy company Sun Investment Group (SIG) and its subsidiary Eternia Solar have disclosed enforcement proceedings involving a solar energy project in Poland.

Eiffel Investment Group, acting on behalf of lenders to SIG AssetCo, has initiated enforcement of collateral associated with the Młodzikowo solar project.

The measures cover shares in the project company, its bank accounts and rights under shareholder loan agreements. Eiffel has indicated that it intends to acquire ownership of the project company’s shares.

The enforcement notice also restricts shareholder rights and operations involving the relevant accounts and shareholder loans.

SIG said the action is currently limited to the Polish project and does not extend to other collateral within the wider financing arrangements, including pledged shares in SIG itself. However, the lenders’ security agent has retained its rights under the broader financing agreements.

The companies also clarified that the enforcement does not extend to collateral securing their bonds.

Eternia Solar is assessing the potential consequences for its business, financial position and bond obligations. SIG is its sole shareholder and the guarantor of its outstanding bonds.

Both companies are considering legal and commercial options to mitigate potential adverse consequences. The transfer of ownership of the Polish project has not yet been confirmed.

Sources: Sun Investment Group disclosure · Eternia Solar disclosure.