(Bloomberg) -- Solar-module manufacturer Meyer Burger Technology AG has secured bridging financing from a group of its existing creditors, to tide it over while it negotiates with its largest customer.
The Swiss-listed company secured a bridge facility of $39.48 million from funds including Highbridge Capital Management and Walleye Capital LLC, according to a statement Friday. The loan, due on January 17, also buys time to negotiate a longer-term debt overhaul.
Meyer Burger plans to reach a new offtake agreement with DESRI in the course of December, after the renewable-energy developer’s decision to terminate an existing agreement sent shares plunging last month.
Meyer Burger’s woes are in part testament to the challenges facing the solar-panel industry in the Europe and the US, given the domination of cheaper Chinese products. The company has also had to navigate shifting subsidy regimes, particularly in the US.
Meyer Burger Plunges With Europe’s Solar Industry in Crisis
To help address its operational turnaround, Meyer Burger said it had brought on Alvarez & Marsal as a restructuring adviser.
The company is able to utilize its debt facility in multiple tranches dependent on certain milestones. The initial tranche of $19.7 million is expected to be drawn “immediately.”
The broader group of creditors also includes LMR Partners, System 2 Capital LLP and Whitebox Advisors, according to the statement.
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