German wind turbine manufacturer Senvion continues talks with creditors, other possible sources of funding and main shareholders to secure funding for the company, reports Bloomberg News, referring to a company statement. Senvion is considering all available options, including legal and non-legal reorganizational processes, the statement says.
In late March this year, several industry media outlets published stories about the unprofitable manufacturer attempting to correct course by effectuating radical changes. These would entail an exit from a range of markets and emphasis on fewer turbine models, according to an internal message from Senvion Chief Executive Yves Rannou that the media had acquired.
March 20, Senvion also announced that it had appointed Neil Robson as Chief Restructuring Officer and that he would be an important employee in the financing discussion necessary for supporting the transformation plan implemented in January this year.
Rannou was appointed CEO in January, following Jürgen Geissingers departure in May and the temporary replacement, Chief Financial Officer Manav Sharma, who resigned from both positions last month.
And Senvion is a company that could use a helping hand to correct its course. As EnergyWatch has previously written, the company announced this February that the annual report has been postponed indefinitely.
"We have taken swift action to fix execution weaknesses both in terms of our project management as well as strengthening of regional teams in order to recover the lost revenues and profits as quickly as possible," Rannou said on the postponement of the annual report.
A week prior, Senvion had performed a downward adjustment of expectations for the year, where now there is a revenue of EUR 1.45 billion and an adjusted EBITDA margin of just 3 percent. Originally, the expectation was EUR 1.8-1.9 million and a margin of 5-6.5 percent. The downward adjustment made Moody's send the assessment of senior debt further down the junk sphere.
English Edit: Jonas Sahl Jørgensen