Uniper warns of 'possible insolvency'

Embattled German gas trader Uniper warned on Monday that it faces "possible insolvency" unless shareholders support an additional government bailout of more than €50.0bn.

Uniper chief executive Klaus-Dieter Maubach said investors were at risk of losing their entire stake in the firm if they opted to vote against the state-backed taxpayer rescue plan.

Maubach said: "If approval is not granted, we would have to review very critically the so-called going concern forecast for our company.

"In the management board's view, a possible insolvency could lead to a complete loss for shareholders."

The Düsseldorf-based outfit, which owns the Ratcliffe-on-Soar coal-fired power station and six other gas-fired plants across the UK, also turned to the Reichstag back in June, securing €8.0bn for Finnish owner Fortum's stake.

As of 0830 GMT, Uniper shares were down 2.78% at €2.80 each.

Reporting by Iain Gilbert at Sharecast.com