Electrawinds receives creditor protection for three months - report

Dec 27, 2013 - Belgian renewable energy firm Electrawinds has received protection from creditors for the period of three months from the commercial court in Ostend, De Standaard daily reported Thursday.

The ailing company filed for creditors protection on December 9 under the Business Continuity Act.

The court decision is valid both for Electrawinds NV and Electrawinds SE (ETR:EWI), the Luxembourg-based parent company. The protection from creditors will expire on March 27, 2014.

The court further appointed three representatives who will assist the company in its restructuring. They will enter the company’s management board, replacing its founder and CEO Luc Desender.

A final report has to be submitted to the court on February 20. Creditors will then receive three weeks to review the company’s new restructuring plan which will be voted on March 13.

Electrawinds can subsequently file for an extension of its protection from creditors with another three months.

The renewable energy firm has been in negotiations with possible takeover candidates for weeks. The company’s debt amounts to EUR 117 million (USD 162m).

Flemish inter-municipal group Tecteo, active in the energy and telecommunications sector, said last week it was ready to invest EUR 50 million in Electrawinds.

(EUR 1.0 = USD 1.380)

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