TPI Composites has voluntarily filed for Chapter 11 bankruptcy in the US as part of a plan to restructure the business.
The Arizona-based wind blade manufacturer said it has reached an agreement with its senior secured lenders, funds managed by Oaktree Capital Management, for the consensual use of around $50m in cash collateral and up to $82.5m in debtor-in-possession financing, subject to court approval.
The financing package is expected to include $27.5m in new money to support day-to-day operations and $55m rolled up from the company’s existing senior secured credit facility.
Chief executive Bill Siwek said: “Over the past several months, we have implemented strategic measures to fortify our business. These deliberate steps were designed to strengthen our financial stability and ensure we remain well-positioned to provide long-term benefits to our customers, suppliers, partners, and associates.
“Despite recent progress, industry-wide pressures have created financial challenges that must be addressed. We explored a variety of alternatives to address the challenges facing the company and believe that a Chapter 11 process is necessary to position the company for success.”
Siwek said the restructuring aims to right-size the company’s balance sheet, secure new liquidity and allow investment in innovation to maintain its position as a provider of “leading-edge wind blade solutions.”
TPI said it will continue operations during the process, with no material disruption expected to manufacturing or blade services. The company will also maintain relationships with customers and suppliers.
Customary motions have been filed with the US Bankruptcy Court for the Southern District of Texas to ensure operational continuity, including payment of employee wages, salaries and benefits. The company intends to continue paying suppliers for goods and services provided after the filing in line with customary terms.
Siwek added: “As we continue active negotiations with stakeholders regarding the terms of our restructuring and advance the Chapter 11 process, we remain committed to serving our customers and collaborating closely with our suppliers. I am grateful to our associates for their dedication… and to our customers, suppliers, service providers and other stakeholders for their steadfast support during this restructuring.”