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Vestas Tumbles on Report of Debt Restructuring Talks

Sally Blakewell — Bloomberg — July 2, 2012

Vestas Wind Systems A/S (VWS) fell the most in four weeks after a report that the turbine maker is in talks with two banks about restructuring debts after drawing a 300 million-euro ($379 million) credit line.

The shares tumbled 8.1 percent in Copenhagen after the Sunday Times reported that Royal Bank of Scotland Group Plc and HSBC Holdings Plc (HSBA) demanded Vestas submit a comprehensive financial plan from Vestas. The British newspaper said Vestas hired PwC and the banks appointed Ernst & Young LLP to advise on the plan.

Vestas along with rivals General Electric Co. (GE) andSiemens AG (SIE) is struggling with declining turbine prices and excess capacity as nations from the U.S. to Germany rein in support for renewable energy. The company detailed restructuring plans in January after issuing a second profit warning in three months. It shelved a U.K. offshore-turbine factory venture and closed a plant in China to save cash last month.

“The company is clearly in severe distress,” Martin Prozesky, an analyst at Sanford C. Bernstein & Co., said.

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  1. Wind-turbine manufacturer, Gamesa, furloughing 165 Pennsylvania workers | Quixotes Last Stand - July 6, 2012

    […] pipeline for 2013,” Rosenberg said.  (To continue reading, click here) Related articles: Vestas Tumbles on Report of Debt Restructuring Talks UK — Vestas Scraps Wind-turbine Plant as Industry Seeks Clarity Share […]

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