TPI Composites initiates voluntary Chapter 11 proceedings
TPI Composites has commenced voluntary chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas to pursue a comprehensive restructuring of the company aiming to allow the company to emerge as a stronger enterprise. To support the company during this process, TPI has reached an agreement, subject to final documentation and approval of the Bankruptcy Court, with the company's senior secured lenders comprised of funds affiliated with funds managed by Oaktree Capital for Oaktree to provide a debtor-in-possession financing facility of up to $82.5M and for the consensual use of cash collateral, which is anticipated to be approximately $50M. It is expected that the DIP financing facility will be comprised of up to $27.5M in new money to support the company's day-to-day operations and up to $55M rolled up from the company's existing senior secured credit facility. Throughout this process and moving forward, TPI will continue operating normally and does not expect any material operational impact from the chapter 11 proceedings. In conjunction with the chapter 11 proceedings, the Company has filed a number of customary motions with the Bankruptcy Court seeking court authorization to support its operations.
