Senvion has today filed for “self-administration proceedings” in order to safeguard its ongoing transformation programme.
The company said the proceedings related to Senvion GmbH as well as its subsidiary Senvion Deutschland GmbH.
The aim of the proceedings is to allow Senvion to proceed with its transformation programme that was started in February, it said.
Senvion added that following approval by the Court, it would quickly meet with customers to develop plans to support the continuity of its installation plan and service business.
“Senvion would continue to pursue its ongoing transformation programme with a view to stabilising and strengthening the company by refocusing operations and initiatives on the most attractive markets, streamlining the product portfolio and continuing on realising efficiency gains in the service business and in material cost outs,” it said.
Refinancing discussions with lenders have so far not come to a positive conclusion, the company said.
Senvion said discussions with lenders and major bond holders are continuing to try and secure the continuation of operations which may allow the company to successfully exit the process.
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.
Gerrit Holzle and 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 programes, the company said.
The supervisory board and Senvion’s main shareholder, Centerbridge, which provided the company with approximately €82m over the past nine months, have given their support to the management board, it added.
Senvion said that under the self-administered insolvency proceedings, it is also exploring new funding opportunities. “Various potential investors have expressed their interest,” it said.
Senvion chief executive Yves Rannou 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 programme. We are in the process of discussing financing options.
“If successful, we may be able to exit the initiated process successfully.”
Rannou added that the company will “work tirelessly” to get back on track.
“Our employees, customers and suppliers are critical on this journey,” he said.
“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 stabilise and strengthen Senvion.”