Intel stock spikes after report of possible US government stake
Investing.com -- TPI Composites Inc (NASDAQ:TPIC) stock tumbled 16.5% after the wind blade manufacturer filed for Chapter 11 bankruptcy protection to pursue a comprehensive financial restructuring.
The company, along with its domestic subsidiaries, commenced voluntary bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. TPI has reached an agreement with its senior secured lenders, including funds managed by Oaktree Capital Management, for a debtor-in-possession financing facility of up to $82.5 million to support operations during the restructuring process.
"Despite recent progress, industry-wide pressures have created financial challenges that must be addressed," said Bill Siwek, Chief Executive Officer of TPI. "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."
The DIP financing facility is expected to include up to $27.5 million in new money to support day-to-day operations and up to $55 million rolled up from the company’s existing senior secured credit facility. TPI also anticipates having access to approximately $50 million through the consensual use of cash collateral.
The company stated it aims to reach an agreement with stakeholders on a reorganization plan that would allow it to right-size its balance sheet and compete successfully in the current economic environment. TPI intends to continue operating normally throughout the bankruptcy process, with no material operational impact expected from the proceedings.
TPI Composites has filed customary motions with the Bankruptcy Court seeking authorization to support its operations, including the payment of employee wages, salaries, and benefits. The company plans to continue honoring obligations to key stakeholders and suppliers for goods and services provided after the filing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.