Founder of Electrawinds ordered to pay €20 million

PMV brought the case to court after trying to sell its shares in Electrawinds in 2013, at a time when the company was experiencing difficulties. Winpar was contractually obliged to pick up the €20 million stake, but refused. The court has now reasserted Winpar’s obligation.

Electrawinds began to have problems in 2012 after a period of rapid expansion from wind into other forms of alternative energy, including solar, waste incineration and biofuels. A round of new investments failed, and the company was left with a €150 million hole in its finances, despite investments totalling that amount from the Flemish and federal governments over the years.

“We will appeal this verdict,” Desender said at the weekend. “This is completely unjust.” It was legally established, he said, that they could repay the amount in shares in Electrawinds SE, the name of the company after a merger with European Clean Tech.

However, financial daily De Tijd points out that Electrawinds SE, thanks to a series of rescue plans that essentially stripped the company bare, has few remaining assets. The share package that was offered to PMV is worth barely €1 million at today’s share price. Electrawinds SE recorded a loss of €458 million in 2013.

Photo: A turbine at the Coega wind farm in Eastern Cape, South Africa, developed by Electrawinds
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