Senvion announced that it has reached an agreement with its lenders, which gives financial support for the continuation of its business until the end of August — and potentially for a period thereafter — if ongoing talks with lenders conclude successfully.
The extension enables Senvion to further accelerate its M&A process . The company says discussions with potential bidders are at an advanced stage.
“In tandem with the hard work and commitment of everybody at Senvion, we have been exploring our options to secure the best possible outcome for the company,” said Yves Rannou, CEO of Senvion. “However, as negotiations have not yet been concluded, we will further accelerate the M&A process and in parallel initiate a review of all business areas to secure Senvion’s profitable core business.”
In the spring, the manufacturer filed a petition to commence self-administration proceedings pursuant to Section 270 of the German Insolvency Code. Senvion TopCo GmbH (Senvion’s direct parent company) also filed a petition for ordinary insolvency proceedings with the court.
As a contingency for an unsuccessful outcome to the company’s efforts to sell Senvion as a whole, or substantial parts of it, the management has to prepare for all eventualities. To this end, management will shortly be meeting with employees’ representatives to begin the negotiations regarding social plans and balance of interest schemes for all business areas or substantial parts of it if an investor cannot be found in time.
“The goal is to finalize our advanced investor discussions in the short term. I am grateful for all the support of our dedicated employees and would like to thank our lenders for their continued financial support,” added Rannou.