Denmark: Vestas Dismisses Allegations Regarding Debt Restructuring Talks

According to Reuters, the Danish wind turbine manufacturer Vestas dismissed the allegations that the company was considering putting itself up for sale and had entered debt restructuring talks with its lenders.

The allegations were that the company’s banks had given it an “ultimatum”, demanding the company to prepare a comprehensive financial restructuring plan, also that the banks had appointed Ernst & Young to advise on talks with the company and that Vestas had hired PWC to help draw up a plan to restructure its balance sheet.

Reuters quoted Vestas’ spokesman Mikkel Friis-Thomsen as saying: “As a principle, Vestas does not comment on speculation.”

Being hit by the economic recession, Vestas saw its share price drop by two-thirds last year and lose another 45 percent this year. This caused the speculations that it could be a takeover candidate. The company has repeatedly declined to comment on these rumors.

On June 22, Vestas dismissed the plans to build a wind turbine factory at the port of Sheerness in southeast England after it secured no orders for the giant 7-megawatt turbines the plant was meant to manufacture. Three days late, the company said it would close a Chinese plant because of the low demand for their small turbines.

[mappress]

Offshore WIND staff, July 2, 2012; Image: Vestas