TPI Composites has filed for voluntary chapter 11 proceedings in the US Bankruptcy Court for the Southern District of Texas to undertake a financial restructuring. The process aims to reduce debt and secure new liquidity while maintaining normal operations.
To support the restructuring, the company has reached an agreement with its senior secured lenders, funds managed by Oaktree Capital Management, for debtor-in-possession financing and the use of cash collateral. The financing package, subject to court approval, includes up to $27.5 million in new funds for operational needs and the conversion of $55 million from the existing credit facility. The company expects to have about $50 million in cash collateral available.
Chief executive Bill Siwek said the company had taken steps in recent months to improve its financial position but industry conditions had created challenges that required further action. He said the chapter 11 process would help the company restructure its balance sheet, maintain investment in innovation and continue supplying wind blade products and services.
TPI plans to continue operating its manufacturing facilities and blade services without disruption and to meet payment obligations for goods and services supplied after the filing. It has also sought court authorisation to continue paying employee wages, salaries and benefits.
