TPI Composites Seeks Financial Overhaul Through Chapter 11 Proceedings

TPI Composites US87266J1043

In August 2025, wind blade manufacturer TPI Composites initiated a voluntary Chapter 11 bankruptcy filing, marking the start of a comprehensive financial restructuring. The company’s operations during this process are supported by a debtor-in-possession (DIP) financing agreement, arranged with funds managed by Oaktree Capital Management, providing up to $82.5 million. This package includes $27.5 million in new capital. Central to the restructuring strategy is the divestment of non-core assets and securing interim liquidity arrangements with key partners.

A pivotal step in the company’s strategic shift was completed on September 10, 2025, with the sale of its Turkish operations. The assets, which comprised two rotor blade manufacturing plants and a field service business located in Izmir, were acquired by XCS Composites L.L.C-FZ for €92.9 million. This move streamlined TPI's EMEA segment, allowing management to sharpen its focus on core business activities.

The court-supervised process involves several critical deadlines. The bid deadline for the sale of "all assets except those of TPI Mexico V, LLC and TPI Mexico VI, LLC" is set for January 20 at 5:00 p.m. Central Time. This will be followed by an auction on January 26 at 9:00 a.m. CT, with a sales hearing scheduled for February 4 at 9:00 a.m. CT. TPI has indicated it plans to release its next quarterly report around February 18.

Liquidity Agreements and Partner Support

To ensure near-term operational stability, TPI Composites entered into a key agreement with its customer Vestas. After filing a motion on December 10, 2025, a Vendor Advance arrangement received court approval on December 18. A modified Sub-Supplier Advance Agreement became effective on January 8, 2026, furnishing essential short-term liquidity and establishing terms for the sale of specific inventory.

As part of this arrangement, Vestas was granted exclusive rights to submit a potential purchase offer for certain Mexican and Indian assets, for which a qualified bid was already presented on December 11, 2025. Repayment of the advanced funds, which commenced on January 15, 2026, is being facilitated through discounted rotor blade shipments and is slated for full completion by April 30, 2026.

Path Forward and Financial Outlook

The successful execution of the company’s restructuring plan is contingent upon the completion of its asset sales. Management has emphasized its intention to continue normal business operations throughout the Chapter 11 proceedings with the support of the Oaktree DIP financing. The overall financial health of the company is expected to see significant relief only upon the successful conclusion of these divestitures and the implementation of the final reorganization plan. The coming weeks, leading up to the February sales hearing, will be decisive for the firm's future structure.