Theolia agrees €126m bond lifeline

French wind developer and operator Theolia has reached an agreement with its largest bondholder Boussard & Gavaudan, aiming to restructure its €125.8m ($166m) debt.

The company said the agreement foresees a capital increase of €60m to fund part of its debt repayment, which is due to be made in full in January 2015 under the existing agreement.

Theolia warned earlier this year that it would be unable to pay the full amount and could face liquidation if it could not come up with an alternative arrangement.

As part of the restructuring plan, Boussard & Gavaudan would agree to repayment of the remaining convertible bonds – known as “Oceane” debt in France – of €66m in four tranches, with maturities in 2017, 2018, 2019 and from 2020 onwards.

"In case of a favourable vote of shareholders and bondholders, the group would ensure the continuity of its operations beyond its maturity date of 1 January 2015," said Theolia's CEO Fady Khallouf.

Confirming its 2014 half-year results, Theolia claimed they showed "a very strong improvement", with earnings before interest, tax, depreciation and amortisation (Ebitda) up 28% year-on-year to €31.5m. The net loss almost halved.

Theolia builds and operates wind farms in Germany, France, Morocco and Italy with a total capacity of around 1.2GW developed by the end of June 2014.

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