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TPI Composites Inc. (Scottsdale, Ariz., U.S.), together with its domestic subsidiaries, 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 that will enable TPI to emerge as a stronger enterprise.

To support the company during this process, the Bankrupty Court has approved TPI’s first-day motions that will provide the company with the operational flexibility and liquidity necessary to continue normal business operations during the chapter 11 process. Key motions approved include interim approval for debtor-in-possession (DIP) financing from its senior secured lenders of up to $82.5 million, the continuation of employee wages and benefits, maintenance of cash management systems and the authority to pay certain prepetition obligations critical to ongoing operations.

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TPI reached this decision to file customary motions in agreement with the company’s senior secured lenders comprised of funds affiliated with funds managed by Oaktree Capital Management L.P. for Oaktree. It is expected that the DIP financing facility will be comprised of up to $27.5 million in new money to support the company’s day-to-day operations and up to $55 million rolled up from the company’s existing senior secured credit facility, underscoring Oaktree’s continued support for and confidence in the company.

“Over the past several months, we have implemented strategic measures to fortify our business. These deliberate steps were designed to strengthen our financial stability and ensure we remain well-positioned to provide long-term benefits to our customers, suppliers, partners and associates,” says Bill Siwek, CEO of TPI. “Despite recent progress, industry-wide pressures have created financial challenges that must be addressed. We explored a variety of alternatives to address the challenges facing the company and believe that a chapter 11 process is necessary to position TPI for success.”

Siwek says the company aims to reach agreement with stakeholders on the terms of a plan of reorganization for the company in order to right-size its balance sheet and go forward with the ability to compete successfully in the current economic environment. “Doing so will provide access to new liquidity to continue our operations and invest in innovation, ensuring our customers can continue to count on TPI for leading-edge wind blade solutions.”

The company is grateful to its associates for their dedication in continuing to deliver outstanding service, and to TPI customers, suppliers, service providers and other stakeholders for their steadfast support during this restructuring.

Throughout this process and moving forward, TPI will continue operating normally and does not expect any material operational impact from the chapter 11 proceedings. The company will continue to work closely with its customers and suppliers, including by continuing to operate its manufacturing sites and delivering blade services.