Vestas Tumbles on Report of Debt Restructuring Talks

By Sally Bakewell, Bloomberg
Vestas Wind Systems A/S (VWS) fell the most in four weeks after a report that the turbine maker is in talks with two banks about restructuring debts after drawing a 300 million-euro ($379 million) credit line. The shares tumbled 8.1 percent in Copenhagen after the Sunday Times reported that Royal Bank of Scotland Group Plc and HSBC Holdings Plc (HSBA) demanded Vestas submit a comprehensive financial plan from Vestas. The British newspaper said Vestas hired PwC and the banks appointed Ernst & Young LLP to advise on the plan.

Vestas along with rivals General Electric Co. (GE) and Siemens AG (SIE) is struggling with declining turbine prices and excess capacity as nations from the U.S. to Germany rein in support for renewable energy. The company detailed restructuring plans in January after issuing a second profit warning in three months. It shelved a U.K. offshore-turbine factory venture and closed a plant in China to save cash last month.

“The company is clearly in severe distress,” Martin Prozesky, an analyst at Sanford C. Bernstein & Co., said. “The restructuring they’ve announced so far is very insufficient relative to the challenges they are facing. Unless they restructure much more radically, they could run into a liquidity problem,” he said today by phone. Read article

17 thoughts on “Vestas Tumbles on Report of Debt Restructuring Talks

  1. What happens if Vestas goes belly up and the turbines break down, who will honour the guarantee? Who will pay the cost of repairs, the company? the farmer?

    • If Vesta dosen’t have or didn’t pay for the insurance to cover the guarantees then you just named who the stuckees will be.Unless a new company owner who takes over is willing to cover these prior guarantees.

    • Maybe the ELEPHANT has already arrived to set up shop in the Niagara Region at Thorold in the old Dana plant?

  2. I guess if no wind is produced from a broken turbine,the owner will not get paid.
    The buyer of Vestas (if someone does) will charge an arm and a leg for spares.
    The banks who have financed the vestas wind farms ( kingsbridge 1, say) would be a tad rattled if these units could not be serviced as the company running the show would probably still have to service their loans..or go bankrupt…….without wind subsidy to pay
    I see a lot of projects with Vesta turbines changing hands asap.

    Lets watch!

  3. These are the ‘crooks’ who have been failing in their own country for years! The same ‘crooks’ supplying the IWTs to our own ‘crooks’, our local wind energy companies who are in collusion with a crooked Regional Council with a business deal between them that they pretend doesn’t exist.
    Congratulatory comments as this industrial wind energy industry worldwide collapse are worth nothing as long as the whole crooked scheme continues regardless here in Ontario!
    Stop being so nice Canadians. How about describing the Ontario government, and closer to home, the Niagara Regional Council as the crooks they are?
    No point in describing the Ontario wind energy industry as crooks! They already know they are and don’t give a damn!
    Write Letters to Editors, write comments, but don’t forget to pressure your local Councils! They are the only group with the law behind them who may be able to actually to stop these projects.
    All the news reports spelling out just how much of a disaster industrial wind and solar are don’t mean a thing!
    We need at least one Council to actually start the fight…………. OWR and Wind Action Groups have sadly, so far failed!
    Andrew Watts

    • It has taken quite some time to gather the written information needed for Wind Action Groups to fight IWTs.Two elections have taken place that had to be worked on. The science had to be done. The health and safety issues had to be worked on.The individuals involved in or with IWTs had to be identified. Now the flawed work that allowed the permits to be issued has to be compiled but this shouldn’t take too long to do. Probable cause has to be established for investigations to proceed.
      You are right that name calling alone won’t get people very far. The people are going to have to do this work themselves. There is no time to wait for councils to act.

  4. “Too big to Fail” Remember the auto industry, bailed out by the governments of Canada and the US. The big question is: who’s going to bail out Vestas? The Chinese will buy them but at bottom dollar and you can be assured they don’t want any of those legacy cost, such as warranties and such. Anyway, not to worry; McGuinty’s thieves are busy, as we speak, scheming ways to forwarding them more of the Ontario ratepayers and taxpayers monies so they can stay afloat. After all isn’t that the Liberal/NDP way. Just raise the price of electricity some more and lower that Tax on the rich to $250,000, that should about cover the bill. The assimilation of Ontarians to third world status simply continues.

    • Yes, but the people can stop this by looking for any written information in the project procedures that appears to be wrong or flawed. Someone is responsible for this. Share this information with others so that nothing is missed. Which companies are involved and how many times did these same things take place.
      Don’t forget to look for and compile information on stray voltage issues, transmission lines,etc.

  5. Instead of calling the IWT experience a SCAM I believe we have to take this right up to top of of the charts and call it for what it is…………….an out and out FRAUD!
    Of course by doing that we then have to PROVE IT!
    If the following definition doesn’t fit exactly what this Wind Destruction really is I’ll admit I’m wrong:

    In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud,

      • When information is wrong,missing, incomplete,faulty,etc. in documents this can be an indication of corrupt practices being employed.
        Close connections among those who get contracts and those who are in one way or another connected or in positons to those who can grant contracts can also be an indication of corruption.

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