German wind turbine manufacturer Senvion, its lenders, and main bond holders have signed a binding loan agreement, setting forth terms for a EUR 100 million debtor-in-possession (DIP) facility.
According to Senvion, the DIP facility enables the company to continue its business operations following last week's self-administration filing.
The loan has received Board approvals and allows substantial drawings already this week, thus enabling the company to stabilize its business operations and provide funds to its non-insolvent subsidiaries, Senvion said.
"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,'' Yves Rannou, CEO of Senvion, said.
''This is particularly helpful since we managed to significantly ramp up our installations in Q1. So, this is encouraging news for all of us and of course for our transformation process. We have received a multitude of supportive reactions from our customers and suppliers and continue our close dialogue with them. We also deeply appreciate the support of our teams on the ground and their continuous commitment to support Senvion on this journey back to health."
The super-senior secured DIP facility with a tenure of 12 months will provide Senvion the financial means to proceed with the transformation process initiated at the beginning of this year. Senvion's management led by CEO Yves Rannou, has implemented measures to strengthen the company, refocus operations, concentrate on the most attractive markets, streamline the product portfolio, improve installation execution and realize efficiency gains in the service business, Senvion said.
Senvion installed 366MW worldwide in Q1 2019, more than twice as much as in Q1 2018. At the end of Q1 2019, the company's total installed capacity under service amounted to 14.1GW, and the order book stood at around EUR 2.8 billion.