Denmark Won’t Support Vestas Through Financial Hardship
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The Danish government won’t provide direct support to Vestas Wind Systems A/S should the world’s biggest maker of wind turbines need a bailout to stay afloat.
Aarhus, Denmark-based Vestas, which has been hurt by higher-than-budgeted costs to develop its V112 turbine and cuts in green energy subsidies, said in July it agreed with its banks to defer a so-called test of financial covenants, delaying loan payments after losses eroded its cash flow. The government is now saying it won’t step in to bridge any periods of financial distress at the company to prevent it going bankrupt.