UPDATE - Senvion initiates self-administered insolvency proceedings

German wind turbine maker Senvion SA (ETR:SEN) is officially entering preliminary self-administered insolvency proceedings as refinancing talks have so far proven unsuccessful.

The company announced on Tuesday that Senvion GmbH has filed for self-administration proceedings to safeguard the transformation programme it launched in January. The proceedings also relate to subsidiary Senvion Deutschland GmbH.

According to the press statement, main shareholder Centerbridge and Senvion’s lenders and major bond holders are supporting the decision to file the petition. The debt-laden wind turbine manufacturer noted that full recovery continues to be the goal.

In the meantime, Senvion’s lenders and its major bond holders are still holding intensive discussions around a financing offer to secure the continuation of operations. The company itself is exploring new funding opportunities and, according to it, various potential investors have shown interest.

CEO Yves Rannou explained in a statement that the preliminary proceedings under self-administration should help the company gain the needed flexibility and speed to execute the ongoing transformation programme.

“We are in the process of discussing financing options. If successful, we may be able to exit the initiated process successfully,” Rannou stated.

The current management board will remain in office and day-to-day business activities and existing service and maintenance contracts shall be continued during the self-administration, the statement says.

Earlier this year, Senvion revised down its revenue and earnings guidance for 2018 due to some installation delays and subsequently announced the roll-out of a programme aimed at stabilising the company.

According to Reuters, Senvion has more than EUR 1 billion (USD 1.13bn) of debt.

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