Better Energy's restructuring plan gets green light from creditors

In December last year, Better Energy announced that, as a result of a "perfect storm of negative market conditions, reduced investor appetite and deferred payments from key partners," it had filed for restructuring for Better Energy Holding A/S and Better Energy A/S.

At the beginning of January, the capital hunt and the restructuring plans were launched in earnest, a process that was already expected to run until today, February 7.

And now, at a meeting on Friday in the Maritime and Commercial Court, Better Energy has had its creditors approve the group's restructuring plan, which aims to "ensure the company's future operations and financial stability." This is stated by Better Energy in a press release.

"At today's bankruptcy court meeting, the creditors have expressed broad support for the restructuring plan and the continued process. This marks an important milestone in the process and provides a solid foundation for successfully completing the restructuring," the statement reads.

In addition, Better Energy stated that "The already initiated reconstruction process involves continued dialogue with partners on the completion of projects, attracting new investors, divesting assets, and cost efficiencies."

Therefore, opportunities are also being sought to enter into agreements with the main creditors on the management of existing debt.

Hope to realize more solar parks

As a central element of the reconstruction plan, Andel and Better Energy are working on a construction that will make it possible for the four parks in the partnership, Better Energy Andel P/S, to be realized. These are the solar parks Vedde, Radsted-Grænge, ​​Køng Mose and Saltø.

In addition, Better Energy has initiated a number of strategic initiatives in the reconstruction:

• Dialogue with partners and investors on the completion of projects, including with Andel and Industriens Pension.
• Start of a structured process for capital raising in collaboration with Carnegie Investment Bank.
• Adjustment of the company's cost base, including, among other things, for salaries and other operating expenses.
• Dialogue with and conclusion of agreements with key suppliers to ensure stable operations.
• Ongoing dialogue with a significant number of suppliers, contractors and other partners in connection with the slowdown of new deliveries and construction during the reconstruction.
• Implementation of liquidity management tools to ensure sound financial management in the process.
• Analysis of opportunities for the sale of assets to strengthen liquidity in both the short and long term.

"Better Energy continues to work with a view to securing a long-term, sustainable solution for the group. In the coming weeks, the company will intensify the dialogue with partners, investors and creditors with a view to achieving the best possible overall solution for all parties, which at the same time supports the group's future operations and development," says Better Energy, which sends its thanks to everyone involved.

Better Energy's business model is to build solar parks in Denmark, Poland and Sweden, and the company has been responsible for around half of the renewable energy production that has been built since 2020. When the parks are in operation, half of the ownership in the parks is sold off in order to raise capital to build new parks.

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