Germany

Germany

Windreich reassures investors as bond price plummets

Job losses for high-profile German offshore wind developer

German offshore wind developer Windreich has twice this month reassured bondholders about its financial health, following job cuts last month.

Owner Willi Balz has told boldholders that interest payments and bond repayments in 2015 and 2016 "is part of our liquidity planning". Offshore wind remains the company's focus, with 22 German North Sea projects underway.

Windreich cut 23 jobs last April, in administration and public relations as well as areas no longer part of Windreich's core business, such as onshore wind and electro-mobility, said Balz.

From Balz’s perspective, the current low price of Windreich’s corporate bonds is mainly due to negative press reports. In March, news emerged that Windreich’s finances are being investigated by German authorities.

Installation of Global Tech 1’s offshore transformer station was completed last weekend, "triggering the start of electricity earnings and dramatically increasing the value of our shares in the project", said Balz. This and the future sale of its stake in Global Tech 1, alongside financial close for Meg 1, "will shift our achievements and our leading market position back into the limelight".

Windreich’s stake in Global Tech 1 appears to be 4.05%, but it is thought to own much more via one or more subsidiary. It owns 100% of Meg 1.

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