Vergnet enters into receivership

FRANCE: Turbine manufacturer and renewables player Vergnet was placed in receivership last week, due to severe cash flow problems.

Vergnet will be in receivership initially for six months

The company, which built its name manufacturing 200-275kW turbines for extreme cyclone conditions, has been struggling for some time, partly due to a delayed solar project in Nigeria.

Vergnet still continues to win business. In July, it reported projects worth over €30 million, including a 12MW wind power facility in the Caribbean to be equipped with Sinovel turbines under a partnership agreement signed in 2015.

Given its cash flow problems, however, Vergnet has been unable to secure bank guarantees and, therefore, sign the contracts. This is despite Banque Populaire d'Investissement (BPI) being its main shareholder with a 47% stake.

The company will now be placed under observation for six months, which can be renewed twice. In which time it hopes to find an "industrial and/or financial partner to provide the company with long-term financing capacity", Vergnet said in its financial results report in July.