FloWind secures export credit and continues financing bid
1 July 1996
FloWind may have been the most immediate victim of the Kenetech bankruptcy, at least in the short-term. The firm's Bob Lynette confirms that financial companies which were considering providing equity for FloWind's planned re-powering dropped out because of Kenetech's Chapter 11 filing in late May. The companies were Kenetech creditors. Lynette says the bankruptcy "poisons the well a little" with regard to finding financial partners, but also "offers a lot of opportunity." He confirms FloWind is facing a "credit crunch" and is still trying to complete a financial deal for re-powering 137 machines in two phases in Tehachapi. But the firm, rocked by delayed payments for exports to India, has secured a multi million dollar "credit facility" from the Export-Import Bank for its joint venture partners in India. Lynette stresses the loan, between five and ten million dollars, depends upon the Indian partner drawing on it. FloWind has turbines stranded at a dock in the northwestern US. "Inventory is waiting to be shipped outÉ we're waiting for the credit crunch to ease," he adds. He will not say how many turbines are involved.
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