Senvion has filed for self-administration proceedings in order to safeguard its ongoing transformation program.
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These preliminary self-administration proceedings relate to Senvion GmbH as well as its subsidiary Senvion Deutschland GmbH. After refinancing discussions with lenders have so far not come to a positive conclusion. The objective of the proceedings is to allow Senvion to proceed with the comprehensive transformation process that was started earlier this year by the CEO and Management Board. In parallel, lenders and major bond holders are currently continuing intensive discussions around a financing offer to secure the continuation of operations which may allow the company to successfully exit this process.
Yves Rannou, CEO of Senvion, said: “Although we could not yet win some breathing space through a financial restructuring, Senvion has a fundamentally sound and strong business model. Together with all our teams, the management and I are implementing measures to return the company to economic stability. By entering the preliminary proceedings under self-administration, we aim to gain the flexibility and speed required to press ahead with the initiated transformation program. We are in the process of discussing financing options. If successful, we may be able to exit the initiated process successfully. We have been and will continue to work tirelessly to get Senvion back on track. Our employees, customers and suppliers are critical on this journey. I am convinced that with the energy invested so far by all teams, including our Supervisory Board and our main shareholder, Centerbridge, this self-administered restructuring course will stabilize and strengthen Senvion.”
Under the initiated preliminary self-administration, the Management Board would remain in office, continuing to hold all powers and duties, and would ensure that business operations continue. Day-to-day business operations and existing service and maintenance contracts shall be continued. Dr Gerrit Hölzle and Dr Thorsten Bieg have been appointed to the Management Boards of the filing entities to support the restructuring process. Both have significant experience in successfully delivering self-administered restructuring programs.
The Supervisory Board and Senvion’s main shareholder, Centerbridge, which provided Senvion with substantial funds in the amount of approximately EUR 82 million over the past nine months and has been willing to take part in an out-of- court solution, as well as the main financing parties, have given their support to the Management Board. Lenders and major bond holders are continuing intensive discussions to secure additional financing measures for the continuation of operations. Under the self-administered insolvency proceedings, the company also continues to explore new funding opportunities. Various potential investors have expressed their interest.
Senvion’s day-to-day operations shall be continued during the self-administration, which means:
– Managerial responsibilities remain in the hands of the Management Board
– Services and maintenance contracts as well as production shall continue
– Support of customers & suppliers is essential
– Senvion would continue to pursue its ongoing transformation program with a view to stabilizing and strengthening the company by refocusing operations and initiatives on the most attractive markets, streamlining the product portfolio and continuing on realizing efficiency gains in the service business and in material cost outs
– Following approval by the Court, Senvion would quickly meet with customers to develop plans to support the continuity of its installation plan and service business. Senvion prides itself on providing world-class O&M Service, and the management team and restructuring board members will prioritize maintaining and improving that capability, also during the preliminary self-administration phase
Source: Company Press Release