BERLIN (Reuters) - German wind turbine manufacturer Senvion, which filed for insolvency last week, has signed an agreement with its lenders and main bond holders for a 100 million euro ($112.94 million) loan.
Senvion said in a statement the facility meant the group could continue operations and allows for substantial drawings already this week, helping the company to stabilize its affairs and provide funds to non-insolvent subsidiaries.
“This is particularly helpful since we managed to significantly ramp up our installations in the first quarter,” said Chief Executive Yves Rannou, who took the helm in January.
Senvion said it installed 366 MW worldwide in the period, more than twice as much as a year ago, with the majority of the new capacity in growth markets in Latin America and Australia.
Senvion has faced delays and penalties related to big projects, while the wind industry as a whole has seen falling prices and increased competition as it moves away from governments guaranteeing generous fixed subsidies tariffs for power toward an auction-based system.
Market leaders Siemens Gamesa and Vestas have more pricing power, putting smaller suppliers under pressure.
Senvion said the loan with a 12-month tenure would allow the company to proceed with a transformation process launched at the start of the year, including steps to concentrate on fewer markets, streamline the product offering and seek cost cuts.
($1 = 0.8854 euros)
Reporting by Emma Thomasson; editing by Emelia Sithole-Matarise