Background
The Sun Contracting Group was active in the photovoltaic business for years and promoted itself as a sustainable energy provider. Large parts of its business activities were financed by funds from private investors – in particular through:
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qualified subordinated loans,
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various bonds,
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Registered shares of Sun Contracting AG.
A central element of the crisis is the close personal and economic intertwining between Sun Contracting and the Green Finance Group, against which official proceedings are also being conducted, including by the Central Prosecutor's Office for Combating Economic Crimes and Corruption (WKStA). Numerous private investors were approached via specific intermediary networks – often with the promise of sustainable yields and stable returns.
Many of these intermediaries have long been facing criticism due to opaque and sometimes questionable sales methods. Investors were often not adequately informed about how high the actual risk of these financial products was – particularly with regard to subordination, lack of collateralization, and the complex interdependencies within the corporate structures.
The interplay of high debt, high-risk financing models, and an opaque sales structure is likely to have contributed significantly to the current collapse. For investors, this means that the causes of the insolvency go far beyond the ordinary failure of a business model, and that structural problems in sales and corporate governance played a decisive role.
What does this mean for investors?
For investors, this constellation means a significantly increased risk, as they invested in products whose actual risk profile was often not recognizable. Many investors trusted the statements of the intermediaries and assumed they were investing in a sustainable and solid business model. Due to the now obvious structural weaknesses, the lack of transparency, and the complex corporate interlinkages, investors are confronted with the real risk of substantial capital loss up to total loss. In addition, the nature of the distribution and information dissemination opens up potential starting points for claims for damages, which should be carefully examined on a case-by-case basis.
Why insolvency is not „normal failure“
Several factors indicate that the crisis is likely structural in nature:
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economic and personnel ties between various companies
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aggressive sales models
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inadequate risk disclosure
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Financing via subordinated capital and illiquid financial instruments
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early warning signs in individual financial statements
All in all, there is much to suggest that investors are not only victims of a failed business model, but potentially of inadequate or misleading information.
Conclusion: Verification is worthwhile
Affected investors should act quickly now. The earlier legal steps are reviewed and initiated, the better the chances of enforcing claims and limiting financial losses. If you have invested in products of the Sun Contracting Group, we are at your disposal. Contact us so that we can review your individual claims and take the necessary legal steps for you.
For further information and an initial assessment, Anela Blöch and your team at any time at office@atb.law or by phone at 01 39 12345 available.
