Senvion GmbH, the main operative entity of debt-stricken wind turbine OEM Senvion has signed a €100m binding loan agreement with its lenders and main bond holders.
The deal with debtors is likely to give the company breathing space to continue operations in coming months after the manufacturer last week had filed for insolvency under self-administration at a German court.
“The debtor-in-possession (DIP) facility enables Senvion Group to continue its business operations following last week's self-administration filing for certain entities of Senvion Group,” the company’s investor relations department said in an ad-hoc filing.
The loan facility allows substantial drawings already this week, enabling the company to stabilize its business operations and provide funds to its non-insolvent subsidiaries, it adds.
“We would like to thank both our lenders and main bond holders for their support in agreeing to provide us with a DIP facility that will enable us to continue our operations,” chief executive Yves Rannou said.
“This is particularly helpful since we managed to significantly ramp up our installations in the first quarter.”
The OEM has installed 366MW worldwide during the first quarter, more than twice as much as in the same period in 2018. Most new capacity came from South America and Australia.
The company added that is service business continues to develop well, with 14.1GW in capacity under service at the end of Q1.
The loan facility with a tenure of 12 months will provide Senvion with the financial means to proceed with a restructuring started earlier this year, it said.
The company last month said it is set to withdraw from 30 markets and concentrate on a remaining 20 core countries, including key markets in Europe and Latin America, as well as Australia and India. It also wants to shrink its product portfolio.