Senvion has concluded an agreement with its lenders that provides financial support until at least the end of August as it attempts to restructure
The company said the agreement reached with its lenders would enable talks about its future to continue beyond the end of August, if the talks are successful. It said the agreement will also enable it to further accelerate the process. It hopes to achieve results “soon” and said discussions with potential bidders are at an advanced stage.
Reuters recently reported that the company has held talks with Siemens Gamesa Renewable Energy, Acciona, Vestas and Toshiba in Japan. It said potential buyers are aiming for a so-called asset deal that would see them take on Senvion’s assets but not the holding company. An insolvency supervisor may yet opt for a debt-restructuring deal.
The onshore and offshore turbine manufacturer first obtained the support of its lenders and bondholders earlier this year and signed a binding loan agreement setting out terms for a €100M (US$113M) debtor-in-possession facility, a kind of finance for companies that are financially distressed that is usually used to facilitate the reorganisation of a debtor-in-possession. It earlier made a self-administration filing.
Senvion chief executive Yves Rannou said, “In tandem with the hard work and commitment of everybody at the company we have been exploring our options to secure the best possible outcome for the company.
“However, as negotiations have not yet been concluded, we will further accelerate the merger and acquisition process and in parallel initiate a review of all business areas to secure a profitable core business.”
As a contingency for an unsuccessful outcome to the company’s efforts to sell Senvion as a whole, or substantial parts of it, the company said management “has to prepare for all eventualities.”
To this end, the company will shortly be meeting with employees’ representatives to begin the negotiations if an investor cannot be found in time.