Spanish renewable power retailer Holaluz Clidom SA said on Monday that it has “everything ready” to sign loans worth EUR 15 million (USD 15.9m) in its native Catalonia and an equity line of up to EUR 6 million, partially confirming a news report in Spain that said the company was cash strapped and on the brink of insolvency.
Holaluz operates as a renewable energy trader and installer of rooftop solar self-consumption systems for residential customers, who then sell their electricity surplus back to Holaluz. Its solar installation business took a beating due to slower demand as energy prices declined while interest rates went up.
According to Monday’s stock exchange filing, Holaluz will sign financing agreements this week to secure a EUR-10-million loan from the Catalan government-owned financial institution ICF, a EUR-3-million loan from the Catalan government-owned investment vehicle Avancsa, a EUR-2-million convertible loan from several Catalan family offices and an equity line of up to EUR 6 million.
Spanish news outlet El Confidencial reported, citing sources, that the Barcelona-based firm had cash flow problems and was facing insolvency in the near term. According to those sources, the ICF refused to grant a financing line of around EUR 20 million against a EUR-65-million debt that Holaluz had at the end of 2023. The ICF was only willing to offer around EUR 10 million if personal guarantees are provided by the owners rather than company shares.
Holaluz did not respond to El Confidencial’s allegations of cash flow issues. It said it would provide more details about the loan financing at a later date.
Holaluz operates as a renewable energy trader and installer of rooftop solar self-consumption systems for residential customers, who then sell their electricity surplus back to Holaluz. Its solar installation business took a beating due to slower demand as energy prices declined while interest rates went up.
These reasons led Holaluz to lay off 200 solar panel installers and confirm guidance for the low range of the normalised EBITDA target for 2023.
In a market update at the end of January 2024, Holaluz said it had delivered on the target, posting a normalised EBITDA of EUR 3 million for the fiscal 2023, despite a 6.9% year-on-year drop in sales of solar energy systems.
Last week, Spanish solar panel installer SolarProfit announced a drastic layoff and a restructuring plan, haunted by the same loss of appetite for residential and commercial solar.
