Aquila European questions fees as Olhava needs further capital
Aquila European Renewables PLC on Monday said it will hold investment adviser Aquila Capital Investmentgesellschaft mbH accountable, after reporting that investment asset Olhava is again in breach of debt covenants.
The European renewable energy-focused investment firm, which is in a managed wind-down, owns 100% of Olhava, a wind power project in Finland. Aquila Capital, a subsidiary of Commerzbank AG, manages the project on Aquila European or AERI's behalf.
AERI said that following talks with the lender, it will provide up to approximately EUR700,000 in additional capital to Olhava through an additional shareholder loan.
"This is the fourth covenant breach and the second time that the company has been required to provide additional capital to Olhava," AERI noted.
It said Olhava was valued at EUR14.6 million at the end of 2025, down from EUR23.1 million one year prior, but that the board "now questions" this figure.
"Olhava's contribution to the company has fallen from EUR4.1 million in 2024 to break-even in 2025, and now requires further shareholder capital simply to meet its debt obligations," Aquila European said.
The firm noted that Olhava's technical and commercial manager did not submit a properly completed application for feed-in tariff support, causing the project to miss out on tariffs of approximately EUR660,000 in the second quarter of 2023.
"The TCM has offered to pay only the minimum amount required under its contract...which the board considers inadequate," AERI said, adding that it is "considering seeking redress".
This issue, Aquila European said, "raises a question as to whether Aquila Capital exercised adequate oversight of the TCM".
AERI noted that Aquila Capital "has continued to earn substantial management fees" from the Olhava, Albeniz, Tiza and Greco assets.
AERI also noted that its Albeniz solar investment in Spain is "similarly cash constrained" with no distributions from this, Tiza or Greco. As a result, combined with Olhava, AERI's distributable cash flow "is now significantly constrained."
AERI Chair Robert Naylor commented: "The board is extremely dissatisfied with the performance of assets under Aquila Capital's...management and with the repeated calls on shareholders to fund shortfalls.
"We are pursuing every option available to us to protect shareholder value and will hold Aquila Capital, and Commerzbank as its parent, to account."
AERI shares were down 5.3% at EUR0.16 on Monday in London.
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