Visit windpowermonthlyevents.com for the latest on our upcoming conferences and webcasts

Denmark

Denmark

Vestas agrees new debt deal

DENMARK: Vestas has agreed a €900 million loan with its lenders as it seeks to restructure the business following a downturn in customer demand.

Vestas said the loan consists of a €650 million revolving credit facility and a €250 million amortising loan.

The agreement means that cash-strapped Vestas will not be required to issue shares. the turbine maker said the revolving credit facility would expire in January 2015.

In July, the UK's Sunday Times said Vestas' banks, including HSBC and Royal Bank of Scotland, had told the company to prepare a debt restructuring plan.

The newspaper said the banks had appointed Ernst & Young to handle talks with Vestas, which has itself brought in PWC to handle the restructure. The report quoted Vestas debts as around €2 billion.

In a statement about the loan agreement, Vestas said the loans were calculated following a review of its upcoming requirements. The company has been cutting production and R&D jobs in several markets over the last year, with more planned for 2013.

Vestas CEO Ditlev Engel said: "We are satisfied to have reached an agreement with our lenders. It is in the interest of Vestas to reduce our debt, and we now look forward to focusing all our efforts on the continuous development of a more scalable Vestas."

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
[DAYS_LEFT] days Subscribe Now

Left of your Windpower Monthly free trial

Your free trial Subscribe Now

to Windpower Monthly has expired

Windpower Monthly Events

Search more than 4,500 companies in the Windpower Directory

Latest Jobs