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Offshore Wind Journal

Troubled turbine manufacturer enters ‘self-administered’ restructuring plan

Wed 10 Apr 2019 by David Foxwell

Troubled turbine manufacturer enters ‘self-administered’ restructuring plan
Senvion CEO Yves Rannou said the company continues to discuss solutions to its situation with its major shareholder and lenders

Leading on and offshore turbine OEM Senvion filed for what it described as a ‘self-administered restructuring plan’ on 9 April 2019 and is discussing a financing offer with its main shareholder, lenders and bond holders.

The company’s chief executive Yves Rannou said, “Based on our core business strengths, we aim to use the self-administration proceedings to focus on restoring a profitable and sustainable business. We are in the process of discussing financing options... we may be able to exit the process successfully.”

The preliminary self-administration proceedings relate to Senvion GmbH and its subsidiary Senvion Deutschland GmbH. The move came after an initial round of refinancing discussions with lenders did not reach a positive conclusion.

“The objective of the proceedings is to allow Senvion to proceed with a comprehensive transformation process that was started earlier this year by the chief executive and board of management,” the company said. “In parallel, lenders and major bond holders are in intensive discussions around a financing offer to secure the continuation of operations which may allow the company to successfully exit this process.”

Mr Rannou said “Senvion has a fundamentally sound and strong business model. We are implementing measures to return the company to stability. By entering the preliminary proceedings, we aim to gain the flexibility required to press ahead with our transformation programme.

The supervisory board and Senvion’s main shareholder Centerbridge, which provided €82M (US$92M) to the company in the last nine months, are willing to take part in an out-of-court solution. The company’s financiers are said to be supporting the board.

 

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