Senvion GmbH has filed for self-administered restructuring proceedings after refinancing discussions with lenders have so far not come to a positive conclusion.
These preliminary self-administration proceedings relate to Senvion GmbH as well as its subsidiary Senvion Deutschland GmbH.
The objective of the proceedings is to allow Senvion to proceed with the transformation process that was started earlier this year by the CEO and Management Board. In parallel, lenders and major bondholders are currently continuing discussions around a financing offer to secure the continuation of operations which may allow the company to successfully exit this process, the German turbine maker said.
"Although we could not yet win some breathing space through a financial restructuring, Senvion has a fundamentally sound and strong business model,'' Yves Rannou, CEO of Senvion, said.
''Together with all our teams, the management and I are implementing measures to return the company to economic stability. By entering the preliminary proceedings under self-administration, we aim to gain the flexibility and speed required to press ahead with the initiated transformation program. We are in the process of discussing financing options. If successful, we may be able to exit the initiated process successfully. We have been and will continue to work tirelessly to get Senvion back on track. Our employees, customers and suppliers are critical on this journey. I am convinced that with the energy invested so far by all teams, including our Supervisory Board and our main shareholder, Centerbridge, this self-administered restructuring course will stabilize and strengthen Senvion."
Under the initiated preliminary self-administration, the Management Board would remain in office, continuing to hold all powers and duties, and would ensure that business operations continue. Day-to-day business operations and existing service and maintenance contracts would be continued, Senvion said. Dr Gerrit Hölzle and Dr Thorsten Bieg have been appointed to the Management Boards of the filing entities to support the restructuring process.
The Supervisory Board and Senvion's main shareholder, Centerbridge, which has provided Senvion with funds in the amount of approximately EUR 82 million over the past nine months and has been willing to take part in an out-of- court solution, as well as the main financing parties, have given their support to the Management Board. Under the self-administered insolvency proceedings, the company also continues to explore new funding opportunities. Various potential investors have expressed their interest, according to Senvion.