Sian Crampsie
Wind turbine maker Senvion has secured €100 million of funding to help shore up its finances.
The Germany-based firm has signed a binding loan agreement with its lenders and main bond holders that will enable it to keep operating while completing the business transformation plan it embarked on at the beginning of the year.
The move came in March just a few days after Senvion announced that it had filed an application in Germany for self-administration proceedings, a pre-emptive insolvency process.
The company said that the loan would enable it to “stabilize its business operations and provide funds to its non-insolvent subsidiaries”.
Yves Rannou, CEO of Senvion, said: “We would like to thank both our lenders and main bond holders for their support in agreeing to provide us with a [loan] facility that will enable us to continue our operations. This is particularly helpful since we managed to significantly ramp up our installations in Q1.”
The debtor-in-possession (DIP) facility has a 12-month tenure and will provide Senvion with the means to continue its transformation process, which includes measures to strengthen the company, refocus operations, concentrate on the most attractive markets, streamline the product portfolio, improve installation execution and realize efficiency gains in the service business.
Senvion installed 366 MW worldwide in Q1 2019, more than twice as much as in Q1 2018. The majority of new capacity was installed for customers in growth markets in South America and Australia, it said. Senvion also built and installed its first turbine in India, another key growth market.
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