State funds back rescue plan for Electrawinds - report
Nov 12, 2013 - Government funds Fpim and PMV would each provide between EUR 3 million (USD 4m) and EUR 5 million to support the rescue plan for Belgian renewable energy firm Electrawinds, De Standaard daily reported Tuesday.
The funding comes on top of the EUR 30 million, which a consortium consisting of local entrepreneur Duco Sickinghe, DG Infra and Gimv-XL plans to invest amid a capital hike.
It is now to be seen what the circle around Electrawinds’ founder Luc Desender and board chairman Paul Vandekerckhove will do. In principle they could participate with about EUR 10 million to remain company shareholders. Yet, the exact terms of the planned capital hike are still to be defined, including the issue price per share.
Electrawinds is groaning under an enormous debt burden and was forced to start looking for fresh capital several months ago.