Creditors' safeguarding advocated by Greenpeace for league reconstruction
Updated Article:
It's hitting the fan for lignite company Leag as environmental watchdog Greenpeace is giving Saxony and Brandenburg a piece of its mind, demanding insolvency protection for the coal gigant. Greenpeace has fired off an application from their legal eagles at Günther, aiming it straight at the ministers and bigwigs of the two states, according to their announcement.
The drama could be a billion-euro show as there's concern that the states are on the hook for oodles of money for the rehabilitation of previous open-pit mines. Greenpeace energy boffin Karsten Smid had this to say, "It's a bloomin' scandal how the owners of Leag want to shirk their costs onto the public by sliming off billions in assets!" The states need to act sharp, Smid warns, or they'll be stung by this corporate sleight-of-hand.
Greenpeace is accusing Leag of pulling a fast one with their accounting tricks
Back in January, Leag decided to shake things up, separating its renewable energy sector from the grimy lignite biz, a move Greenpeace thinks will drain a chunk of change out of the pot reserved for open-pit mine rehab. The organization tracks Leag's claims that less than ten percent of the required funds have been stashed away in the rehab kitty—Greenpeace's math says the figure is more like five percent!
Günther, Greenpeace's legal pals, argue the senior public officials have got a legal obligation under the Mining Act and Transformation Act to safeguard the right to restore and put the open-pit mines to good use. If this duty is threatened by the asset transfer, an insolvency protection procedure might get underway.
Greenpeace also casts doubt on the valuation certificate Leag got from the auditing firm. The doc's predicated on "unrealistic assumptions and sketchy risk coverage," Greenpeace claims. They say Leag reckons long-term rehab expenses amount to around 5.4 billion euros—but a cool 3.3 billion is still needed by 2038, a target Greenpeace thinks is dead in the water given ever-rising CO2 costs.
So, that's the brewing mudsling between Greenpeace and Leag—stay tuned for updates!
The conflict between Greenpeace and Leag continues, as Greenpeace accuses the lignite company of inadequately funding the rehabilitation of open-pit mines through creative accounting. Greenpeace's legal team, Günther, believes that the senior officials in Saxony and Brandenburg have a legal obligation to protect the environment and ensure the future use of these mines, and could initiate an insolvency protection procedure if the asset transfer threatens this duty. Furthermore, Greenpeace has challenged Leag's valuation certificate, claiming it relies on unrealistic assumptions and inadequate risk coverage, and questioning whether the company has allocated enough funds to long-term rehabilitation expenses, particularly in light of escalating CO2 costs.
