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Senvion inks EUR 100 million loan agreement with lenders and main bond holders

Power News - Published on Fri, 19 Apr 2019

Image Source: Renewables Now
Senvion, its lenders and main bond holders have signed a binding loan agreement, setting forth terms for a EUR 100m debtor-in-possession facility. The facility enables Senvion to continue its business operations following last week's self-administration filing. The DIP facility 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.

Mr Yves Rannou, CEO of Senvion, said that "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. 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 comprehensive 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.

These transformation initiatives are showing first positive results. Senvion installed 366 MW worldwide in Q1 2019, more than twice as much as in Q1 2018. The majority of new capacity was installed for customers in growth markets in South America and Australia, where Senvion has significantly improved execution. With around 120 MW in Chile and Argentina and nearly 110 MW in Australia, these growth markets account for over 60% of the installations in the first quarter. Senvion also built and installed its first turbine in India, another key growth market.

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Posted By : Sanju Moirangthem on Fri, 19 Apr 2019
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