French wind developer Theolia is working on a range of options to repay €125.8m ($174m) of bonds that fall due next year – but warned it could face liquidation if it is unsuccessful.
Theolia told investors its bondholders will be entitled to ask for the repayment as of 1 January 2015 and that “the group considers that, in its current situation, it would not be able to pay the entire amount”.
As a consequence, Theolia is examining scenarios that include implementing a capital increase, issuing a new debt with an extended maturity date, disposing of assets and being subject to another takeover offer – while also trying to renegotiate the terms of its existing convertible bond.
But it warned: “The company cannot guarantee that it will be able to implement one or a combination of several of these options in a timely manner.”
It added that if the scenarios it is working on fail, the group will have to consider legal remedies, “including judicial reorganisation or judicial liquidation”.
Theolia issued the update along with full-year financial figures that showed its net loss widened to €41.2m in 2013, compared to a loss of €34.2m in the previous year, as historic issues from pre-2009 weighed on its profitability.
The group reported a 41% increase in annual revenue compared to 2012, reaching €95.4m last year
CEO Fady Khallouf said: “Unfortunately, despite our efforts, extraordinary factors linked to Theolia’s past investments and commitments have again penalised our performance.”