German biomethane supplier Landwärme has today declared insolvency under the country’s self-administration procedure and has initiated restructuring measures “to overcome the consequences of the ongoing decline in prices of German greenhouse gas (GHG) emission reduction quota”.
Self-administration proceedings are a proven legal framework in German restructuring law analogous to the US’ Chapter 11 bankruptcy proceedings. They allow businesses to reorganise structures and financing while operations continue.
Landwärme attributed the price decline of German GHG tickets to an influx of imported, falsely-labelled biodiesel since the start of last year, as well as other alleged fraud cases regarding upstream emission reduction (UER)…
