In late February 2023, Sono Motors discontinued development of the Sion solar car. 250 employees were laid off. The money paid in advance by customers for reservations – approximately 50 million euros – was to be reimbursed as part of a repayment plan. After no financing source could be secured for the repayment, the company must now file an application for protective shield proceedings under insolvency law. Meanwhile, the U.S.-listed parent company Sono Group N.V. has filed an application for self-administration with the competent Munich district court.
According to the company, the aim of the GmbH’s protective shield proceedings is restructuring in an orderly process. An application for protective shield proceedings may not be filed if the company is already insolvent, but only if insolvency or over-indebtedness is imminent. Furthermore, the intended restructuring must not appear obviously hopeless, and insolvency must not be expected even within the protective shield proceedings.
“Legacy issues from the Sion program could no longer be managed with internal resources”
As part of the protective shield proceedings, the announced reorientation toward B2B business is to be implemented. Sono offers solar technology for retrofitting and integration into vehicles from third-party manufacturers.
Jona Christians, co-founder and co-CEO of Sono Motors, says:
“Detours are part of founding, 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 supporting the restructuring, says:
“The focus on retrofitting and integrating solar technology into vehicles from third-party manufacturers is the logical next step. The company’s innovative solar technology products have the potential to be of great interest to OEMs. Unfortunately, the legacy issues from the discontinued Sion program could no longer be managed with internal resources due to changed market conditions, which made filing an application for protective shield proceedings absolutely necessary to successfully continue the restructuring course already initiated.”
