Glimmer of hope for solar company Creditors keep Meyer Burger alive with 40 million dollars
The Swiss solar company Meyer Burger, which is struggling to survive, has received bridge financing of 39.48 million dollars. The money comes from creditors who want to use it to stabilize the company.
06.12.2024, 08:00
06.12.2024, 08:59
SDA
No time? blue News summarizes for you
- The ailing Swiss solar company Meyer Burger has concluded a bridge financing of 39.48 million dollars with certain bondholders to stabilize the company.
- Meyer Burger announced on Friday that negotiations are continuing with its largest customer Desri and the bondholders following its abrupt termination in mid-November.
- In mid-November, the largest customer Desri terminated the contract with Meyer Burger without notice.
Meyer Burger's fight for survival is not yet over. A liquidity injection from creditors is intended to help the Swiss solar company with a large branch in the USA through this extremely difficult phase.
At the same time, negotiations are continuing with its largest customer Desri following its abrupt termination in mid-November and with bondholders, Meyer Burger announced on Friday. The company thus has liquidity to conclude an agreement for a sustainable restructuring solution. A final agreement is reportedly being sought in the course of December.
The bridge financing is divided into several tranches, which can be drawn upon reaching certain "milestones". According to the announcement, the facility will expire on January 17, 2025 at the latest. The first tranche of 19.7 million dollars is to be drawn down immediately.
"Constructive talks" with largest customer
The availability of the remaining tranches is dependent on additional milestones, as detailed in the press release. The lenders are funds that are already bondholders of Meyer Burger.
In mid-November, the largest customer Desri terminated the contract with Meyer Burger without notice. Since then, the company has been in "constructive talks" regarding the terms of a new agreement, Meyer Burger writes. According to the information, a successful agreement with Desri is one of the prerequisites for drawing down additional funds from the facility.
"An updated agreement with Desri, to the extent executed, is expected to take into account Meyer Burger's changed financial and operational position and is expected to be finalized during December," the company said.
In addition, Meyer Burger announces that it has appointed Alvarez & Marsal as restructuring advisor. This will enable the company to strengthen its focus on the ongoing operational transformation and efficiency improvements in the business.