April 18 (Renewables Now) - Senvion SE (ETR:SEN), the struggling German wind turbine maker, has agreed with its lenders and main bondholders to get EUR 100 million (USD 112.7m) in debt that would enable it to stabilise its business after entering preliminary self-administered insolvency proceedings.
As announced last week, the debt-laden company’s main unit Senvion GmbH filed for self-administration proceedings as it was unable to agree any financing options so as to secure the continuation of its operations. The proceedings also relate to subsidiary Senvion Deutschland GmbH.
In a statement on Wednesday, Senvion GmbH said it has signed a binding loan agreement for the so-called Massekredit, or a debtor-in-possession (DIP) facility that will allow it to continue its business and finance its non-insolvent subsidiaries. The debt facility has been approved by Senvion’s board and “substantial” drawing under it will be possible this week.
Earlier this year, the troubled manufacturer revised down its revenue and earnings guidance for 2018 due to some installation delays and subsequently announced a full transformation programme aimed at safeguarding the business. According to Reuters, Senvion has more than EUR 1 billion of debt.
(EUR 1.0 = USD 1.127)