The most important reason is that the market was awash with rumours that Vestas’ bank lenders were not able to approve its financial covenants and were about to force a potentially damaging rights issue on the company.
In its pre-emptive strike, Vestas was able to announce that the banks had agreed to defer financial covenant testing and allow it both to continue drawing on its credit, and show that it had made a substantial improvement in the second quarter compared with the disastrous Q1, with a recovery in the earnings before interest and taxes margin to 2.5%
