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On Heels of $2.3B Financial Close, Vineyard Wind Joint Venture Partners Announce Restructuring

September 23, 2021

The post On Heels of $ 2.3B Financial Close, Vineyard Wind Joint Venture Partners Announce Restructuring appeared first on POWER Magazine.

Partners developing the 800-MW Vineyard Wind 1 offshore wind farm have announced they will swap assets jointly owned by their 50/50 Vineyard Wind joint venture to allow each party to focus on its separate expansion within the burgeoning U.S. offshore wind industry once the 800-MW Vineyard Wind 1 offshore wind farm is operational.

The Vineyard Wind joint venture is equally held by Connecticut-based AVANGRID subsidiary Avangrid Renewables—a company whose majority (81.5%) shareholder is Spanish renewables giant Iberdrola—and Danish fund management company Copenhagen Infrastructure Partners (CIP). Restructuring will enable both companies “to leverage their strengths and expertise to continue to grow the U.S. offshore wind industry” and “better align project timelines with their separate strategic objectives,” the partners said on Sept. 21.

The development is noteworthy given that the partners recently raised $ 2.3 billion of senior debt to finance the construction of the Vineyard Wind 1 project.…

AECOM Sells Power Business as Part of Restructuring

October 17, 2020

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The post AECOM Sells Power Business as Part of Restructuring appeared first on POWER Magazine.

AECOM has announced the closing of the sale of its Power construction business to affiliates of CriticalPoint Capital LLC. Terms of the deal were not disclosed.

The Los Angeles, California-based infrastructure consulting firm, which this month announced a restructuring plan, earlier this year closed on the $ 2.4 billion sale of its Maryland-based Management Services business—which provides consulting services to the government sector—to New York-based private equity firms American Securities and Lindsay Goldberg.

“The sale of the Power construction business marks another milestone in the successful execution of our transformation into a higher-margin, lower-risk Professional Services business,” said Troy Rudd, AECOM’s CEO, in an Oct. 16 news release. “We have built significant momentum in our business and continue to advance efforts to align our organization around a global structure that fosters a culture of collaboration, better connects our expertise and focuses on our best growth opportunities.…

Restructuring Report: Eskom ‘Fundamentally Insolvent, Permanently Impaired’

October 25, 2019

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The post Restructuring Report: Eskom ‘Fundamentally Insolvent, Permanently Impaired’ appeared first on POWER Magazine.

Eskom, South Africa’s state-owned utility that produces nearly 90% of the African powerhouse’s electricity, is saddled with liabilities, unavoidable expenses, and stranded costs that exceed $ 113 billion, and for various reasons, it is “fundamentally insolvent, permanently impaired, and will never be a true going concern enterprise under its current legal, operational, and governance structure,” concludes a report recently issued by an independent chief restructuring officer (ICRO).

The bombshell two-volume report issued on Oct. 17 by Abu Dhabi–based consulting firm CRO Advisers—a firm that specializes in restructuring and recapitalization of sovereign government assets—was authored by the firm’s chairman, K.W. Miller, whom Eskom stakeholders appointed as ICRO advisor. As part of its independent restructuring analysis, CRO Advisers sought to assess the financial and operational health of South Africa’s Treasury as it relates to Eskom, as well as Eskom’s own governance, credit risk, and quantification. As Miller told POWER on Oct.…

PG&E Seeking $14 Billion in Restructuring Plan

September 6, 2019

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The post PG&E Seeking $ 14 Billion in Restructuring Plan appeared first on POWER Magazine.

Pacific Gas & Electric (PG&E) reportedly will soon file a restructuring plan that includes more than $ 14 billion in equity commitments, as the utility looks to recover from billions of dollars in liabilities tied to its role in California wildfires that caused the company to file the largest utility bankruptcy in U.S. history.

Bloomberg on September 5 reported that PG&E’s plan, due to be filed September 9, will use a combination of debt and equity to cover the claims from wildfires that state officials determined were caused by the utility’s equipment. PG&E has not provided an estimate for those claims, though Bloomberg reported that the company has assurances from financial groups that it could raise as much as $ 40 billion in debt and equity to cover the wildfire claims and other bankruptcy-related costs.

The report said PG&E’s plan will commit to settling fire claims, continuing current power purchase agreements (PPAs), and exiting bankruptcy without increasing electricity rates.…

GE CEO: Company ‘Finished’ with Restructuring

June 27, 2018

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General Electric (GE) saw its stock price surge more than 7% on June 26 after the company said it would dissolve its stake in oil services company Baker Hughes and spin off its healthcare unit over the next few years.

The announcement comes one day after GE said it would sell its Distributed Power business, which includes the company’s Jenbacher and Waukesha engines, to global private investment firm Advent International in a $ 3.25 billion deal.

CEO John Flannery on Tuesday, in an interview with the CNBC program “Squawk on the Street,” said, “I’m a believer” in his company’s turnaround prospects. “I’m very comfortable when we have seen issues along the way, we’ve serviced them, we’ve dealt with them and I think today is another example of that,” he said.

Flannery, who has divested several of the company’s assets since taking over from long-time CEO Jeffrey Immelt last summer, including the company’s electrification unit, said, “We are finished” when asked if more moves were in the offing.…

Restructuring on Horizon for Siemens and GE

June 25, 2018

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Siemens and General Electric, two rivals battling financial problems due to fewer orders for their flagship energy products and services, could each announce major restructuring moves in the coming weeks, according to media reports.

Reuters on June 21, citing a person familiar with the matter, said Siemens plans to merge or trim some of its industrial units, which could include its power operations. Reuters said it was told the Munich, Germany-based company would reduce its core industrial divisions from five to three, effective October 1—the start of the company’s next fiscal year. It reported that sources said details of the company’s “Vision 2020+” plan would be known in August.

Bloomberg earlier this month said the company was considering the sale of its gas turbines manufacturing unit.

Germany’s Manager Magazin also reported the changes on Thursday. The magazine said the new divisions would have higher margin targets. It reported that part of the plan is to merge the company’s “so-called Digital Factory unit with operations designed to automate process industries, and to combine overland high-voltage networks with the power plant business.”…