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.

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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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