U.S. wind blade manufacturer TPI Composites has filed for Chapter 11 bankruptcy protection as part of a plan to restructure its operations and stabilize its financial position.
The Arizona-based company said it reached a restructuring agreement with senior secured lenders, including funds managed by Oaktree Capital Management. The plan includes the consensual use of approximately $50 million in cash collateral and up to $82.5 million in debtor-in-possession (DIP) financing, pending court approval.
The financing package comprises $27.5 million in new funding to support day-to-day operations, while the remaining $55 million will roll up existing debt under the company’s senior secured credit facility.
“Despite recent progress, industry-wide pressures have created financial challenges that must be addressed,” CEO Bill Siwek said in a statement. “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 company stated that its operations will continue during the bankruptcy process with no significant disruptions expected to manufacturing or blade services. TPI also said it intends to maintain its relationships with customers and suppliers throughout the restructuring period.
TPI has filed customary motions in the U.S. Bankruptcy Court for the Southern District of Texas to ensure operational continuity, including ongoing payment of employee wages, salaries, and benefits. Suppliers providing goods and services after the filing will continue to be paid under standard terms.
“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,” Siwek added.
TPI, which supplies composite wind blades to major turbine manufacturers, said the restructuring is intended to improve liquidity, reduce debt, and support future investments in innovation.
