Friday, 1 August 2014
75 000 see their investments shrivel!. $1.9 billion German wind energy company goes insolvent!
The excellent German site www.notrickszone.com run by P Gosselin reports(23 July) that the German Prokon wind company has collapsed! Instead of securing financing from banks and leading institutions, the company attracted capital from private persons,enticing them with promises of high rates of return and a contribution to protecting the climate.In 1995 the company raised $1.9 billion by advertising directly to the public with promises of superb annual returns. In total 75 000 investors took up the offer. As time went on critics began to accuse the company of using fresh money coming from new investors to pay the returns for the older investors. They warned it was only a matter of time before the scheme collapsed. And so it was that on 22 January 2014 the company declared insolvency! German leading newspaper Der Spiegel reported on this wind power disaster. Der Spiegel wrote that the woes of this company were not only unique to Prokon but also to many wind park developers all over Germany! so much for the alarmisst reliance on wind power.