German wind-energy financier Prokon files for insolvency after warning to investors

BERLIN – Prokon, a German wind-energy financing company that attracted investors with promises of high returns, says it has filed for insolvency.

The company said it made the filing Wednesday at a court in Itzehoe, northwest of Hamburg, where it’s based.

The company had warned earlier this month it would have to file for insolvency if investors continued to withdraw capital, and urged them to commit to keeping their money in Prokon until at least October. It says more than 75,000 investors put a total of nearly 1.4 billion euros ($1.9 billion) into Prokon.

Its business model — the company offered annual interest payments of up to 8 per cent — had drawn criticism from consumer protection groups, who questioned its viability.

Prokon said Wednesday it will “adapt” its business model.