August reprieve for Senvion as lenders extend loan

Senvion's creditors and lenders have extended the insolvency loan for the embattled manufacturer to the end of August, giving the company more time to negotiate potential takeover deals.

Senvion has an agreement with creditors in place which allows it to continue operating throughout August
Senvion has an agreement with creditors in place which allows it to continue operating throughout August

Google Translate

The firm secured a €100 million "debtor-in-possession" 12-month loan from its existing lenders in April 2019, after a severe cash flow crisis caused by "operational mistakes" knocked the company to its knees.

The new agreement means the company is secure until the end of August to continue negotiating with interested parties over a potential takeover. 

"In tandem with the hard work and commitment of everybody at Senvion, we have been exploring our options to secure the best possible outcome for the company," said CEO Yves Rannou. 

"However, as negotiations have not yet been concluded, we will further accelerate the merger and acquisition process and in parallel initiate a review of all business areas to secure Senvion's profitable core business.

"The goal is to finalise our advanced investor discussions in the short term. I am grateful for all the support of our dedicated employees and would like to thank our lenders for their continued financial support," Rannou added. 

Talks are being held to sell the company as a whole, or in parts, with some areas of the business - such as its servicing contracts - seen as more attractive to investors than others. 

While the support from the lenders could still be extended again beyond August, the company said it should begin preparing for not being able to sell. 

"To this end, management will shortly be meeting with employees' representatives to begin the negotiations regarding social plans and balance of interest schemes for all business areas or substantial parts of it if an investor cannot be found in time," the company added in a statement. 

Newswire Reuters reported leading turbine OEMs Siemens Games and Vestas were both in discussions with the German firm, along with Japanese conglomerate Toshiba. 

Senvion installed 546MW of new turbines in the first half of the year, up from 289MW a year ago providing a much needed cash injection from project execution.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

David Weston recommends

What next for Senvion?

Read more

Windpower Monthly Events


Latest Jobs