Econcern’s Directors Held Responsible for Bankruptcy

The Official Receiver of Econcern, the Dutch based international renewable energy developer, is holding the former directors and supervisors liable for hundreds of millions Euros of damage caused by the green energy company’s bankruptcy. The company filed for bankruptcy in 2009.

According to the Official Receiver, the directors and supervisors were not fulfilling their duties properly. A leading cause of the bankruptcy was improper management and improper supervision.

It remains to be seen whether legal action will follow. At present, the Official Receiver continues to examine the possibility of an amicable settlement.

In addition to the former company directors and supervisors, the Official Receiver also holds the accountants PricewaterhouseCoopers (PwC) liable for the damage. A disciplinary complaint has been submitted against the accountants because of alleged inaccuracies in Econcern’s annual results.

Econcern went bankrupt in June 2009, after the company faced serious financial problems for the second time in quick succession. Shareholders and banks were not willing to help the company on the second occasion.

Before the bankruptcy the company had employed 1,400 people, and operated in 21 countries in the fields of wind and solar power, biofuels and electric cars. Another Dutch energy company, Eneco, took over some of Econcern’s activities after the bankruptcy.

At the time of the bankruptcy, Econcern had offshore wind assets under development in the Belwind and Gode Wind I offshore wind farms.