Societa Agricola OLMO Energy S.r.l. (OLMO) has been sold to a private investor at a court auction, following bankruptcy procedures. The final purchase price was US$2.1 million.
BKS Bank AG, headquartered in Klagenfurt, Austria, is a Vienna stock market listed banking group with 1,100 employees and operations in the banking and leasing business in Austria, Slovenia, Croatia and Slovakia, and representative offices in Hungary and Italy. BKS, which had financed the biogas plant and had a pledge on assets, received an offer from the insolvency administrator of US$0.6 million in November 2016, which was not accepted.
OLMO is an Italian biogas plant and brownfield asset. The plant, located at the Ronco all'Adige site in Verona, Italy, has an installed capacity of 999 kWel for energy production. The electricity produced was fed into the public grid at a fixed GSE tariff. The feed-in tariff was originally granted from February 2011 for 15 years until January 2026. OLMO filed for bankruptcy in May 2011, with significant debt exposure. OLMO's assets were sold to a new private investor at a court auction closed in September 2017.
Oaklins's team in Austria acted as the exclusive financial advisor to BKS Bank AG in this distressed sell-side mandate. The team developed a strategic plan to increase the purchase price and led this transaction until closing.
Danja Nemec, Risk Manager at BKS Bank AG, said: “Thanks to Oaklins’ Austrian team for successfully advising us on the implementation, development and final solution, which resulted in the value of BKS's pledges increasing by more than double the initial offer.”
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