Senvion Reaches Agreement With Lenders, Providing Support Through August

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Senvion has reached an agreement with its lenders that gives financial support for the continuation of its business until the end of August and potentially for a period thereafter, as long as ongoing talks with lenders can be concluded successfully, the German turbine maker says.

This agreement enables Senvion to further accelerate its merger and acquisition (M&A) process in order to “achieve results soon.” Discussions with potential bidders are at an advanced stage, according to Senvion.

“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,” states Yves Rannou, CEO of Senvion.

“However, as negotiations have not yet been concluded, we will further accelerate the M&A process and, in parallel, initiate a review of all business areas to secure Senvion’s profitable core business,” he continues. “The goal is to finalize 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.”

As a contingency for an unsuccessful outcome of the company’s efforts to sell Senvion as a whole, or substantial parts of it, the management has to prepare for all eventualities, notes Senvion. 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.

In April, Senvion filed a petition to commence self-administration proceedings pursuant to Section 270 of the German Insolvency Code with the competent local court in Hamburg. Additionally, Senvion TopCo GmbH, Senvion’s direct parent company, filed a petition for ordinary insolvency proceedings with the court. The company said at the time that refinancing discussions with lenders had so far not come to a positive conclusion.

Then, Senvion, its lenders and main bond holders signed a binding loan agreement, setting forth terms for a EUR 100 million debtor-in-possession (DIP) facility. The facility enabled Senvion to continue its business operations following the self-administration filing. The DIP facility enabled the company to stabilize its business operations and provide funds to its non-insolvent subsidiaries.

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