Electrawinds CEO proposes split-up to save ops - report

Nov 29, 2013 - Luc Desender, CEO and main shareholder in ailing Electrawinds, has made a non-binding proposal, via his Winpar vehicle, to split up the renewable energy firm into a Belgian and foreign unit, De Standaard daily reported Thursday.

The company's management is currently examining the proposal.

Shareholders cannot agree to how the company should solve its financial problems. Therefore Desender, as main shareholder, is coming up with the proposal to split off the Belgian unit and sell it to a group of investors including private equity firms Gimv (EBR:GIMB) and Fortino. Foreign participations should remain within the existing holding company.

Current shareholders already rejected a bailout offer from the same investor group, arguing they would lose their investments.

It is, however, still uncertain whether Desender’s offer will be accepted. Earlier this week Electrawinds said its management had taken one more week to find a solution to its financial problems. If a solution is not found, the company would be heading towards a bankruptcy filing.

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