France

France

Theolia shareholders pass restructure plan

FRANCE: Management of the cash-strapped French wind developer and operator Theolia breathed a sigh of relief mid-March when shareholders approved the Board's financial restructuring plan by a clear majority.

This will allow Theolia "to reinforce its balance sheet, to have the means for its development and to revitalise the company by creating value," the company says.

The two-stage plan involves Theolia amending the terms of its convertible bonds, to save it from possibly having to pay out up to €253 million on January 1 2012, when the bonds can be redeemed.

Instead, that date will now be pushed back to January 1 2015, and the conversion price reduced to encourage bondholders to swap their bonds for shares.

How much it is reduced by depends on the second stage of the plan, to launch a capital increase of up to €100 million among existing shareholders this spring.

If fully successful, the company will increase its cash position by EUR40 million, reduce its convertible bond debt to €127 million and increase its equity by around EUR150 million.

This will give the company sufficient funds to continue building its development pipeline, which now stands at 2013MW.

 

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