End February 2023 Sono Motors has discontinued development of the Sion solar car. 250 employees were laid off. The money customers had paid in advance for reservations – around €50 million – was to be refunded as part of a repayment plan. After failing to find a source of financing for the repayment, the company must now file for insolvency protection under insolvency law. Meanwhile, the US-listed parent company, Sono Group NV, has filed for self-administration with the responsible Munich District Court.
According to the company, the goal of the GmbH's protective shield proceedings is to achieve restructuring in an orderly manner. An application for protective shield proceedings may not be filed in the event of actual insolvency, but only in the event of imminent insolvency or excessive indebtedness. Furthermore, the intended restructuring must not be manifestly hopeless, and insolvency must not be expected even in the protective shield proceedings.
“Legacy burdens from the Sion program could no longer be managed with our own resources”
The announced reorientation toward B2B business is to be implemented within the framework of the protective shield proceedings. Sono offers solar technology for retrofitting and integration into third-party vehicles.
Jona Christians, co-founder and co-managing director of Sono Motors, says:
"Detours are part of starting a business, and we will continue to strive to implement sustainable solutions with our partners and thus contribute to the decarbonization of the vehicle market."
Dirk Schoene from the law firm Dentons, which is assisting with the restructuring, says:
"Focusing on retrofitting and integrating solar technology into third-party vehicles is the logical next step. The company's innovative solar technology products have the potential to be of great interest to OEMs. Unfortunately, due to changing market conditions, the legacy issues from the discontinued Sion program could no longer be managed with our own resources, making the application for protective shield proceedings imperative to successfully continue the restructuring course already embarked upon."
