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Meyer Burger, a Swiss solar technology company, has secured a bridge financing of $40 million to support its ongoing restructuring efforts. The financing, provided by existing bondholders, will help the company to continue its operations and reach a sustainable restructuring solution.
The company has been facing financial difficulties since its largest customer, Desri, abruptly terminated its contract in mid-November. Negotiations with Desri and bondholders are ongoing, and the company hopes to reach a final agreement in December.
The bridge financing is divided into several tranches, which can be drawn upon reaching certain milestones. The first tranche of $19.7 million will be available immediately, with the remaining funds dependent on additional milestones. The facility will expire on January 17, 2025, at the latest.
Meyer Burger has also appointed Alvarez & Marsal as a restructuring adviser to help with its ongoing operational transformation and efficiency improvements.
The company’s largest customer, Desri, terminated its contract without notice, causing significant financial strain. However, Meyer Burger remains optimistic about reaching a new agreement with Desri, which is expected to take into account the company’s changed financial and operational position.
This news is significant as it provides Meyer Burger with the necessary funds to continue its operations and reach a sustainable restructuring solution. It also highlights the challenges faced by the solar industry, particularly in the face of competition from China. The ongoing negotiations with Desri and bondholders will be crucial in determining the company’s future.