The wind turbine blade maker has filed for bankruptcy, listing estimated assets of between $500 million and $1 billion, with liabilities ranging from $1 billion to $10 billion.
TPI Composites (TPIC) stock fell 38% in premarket trading on Tuesday after the wind Turbine blade maker filed for bankruptcy to restructure its debt.
The company stated that one of its lenders, Oaktree Capital Management, has agreed to provide support with $27.5 million in new capital, as well as $55 million from its existing loan agreement, to support its day-to-day operations. Oaktree has also allowed TPI to use cash collateral.
“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,” said Bill Siwek, Chief Executive Officer of TPI.
Retail sentiment on Stocktwits was in the ‘extremely bullish’ territory, while retail chatter was ‘extremely high.’
The company listed estimated assets between $500 million and $1 billion, with liabilities between $1 billion and $10 billion, Bloomberg News reported, citing a bankruptcy court filing dated Monday.
The wind equipment maker’s bankruptcy filing hints toward a continued downward spiral for the once-booming industry in the U.S. Since taking office for the second time, U.S. President Donald Trump has severely criticized large wind projects, and his Republican allies in Congress have moved to slash incentives for new projects.
“Will be interesting to see how this goes short term… sounds like they were making progress but due to market conditions they are doing this voluntarily to come back stronger?” one user said.
The company reported a net loss of $48.3 million for the first quarter, along with sales of $336.4 million. It has manufacturing facilities in the U.S., Spain, Turkey, and India, and customers include Vestas and GE.
TPI stock has plunged nearly 85% this year.
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