TPI Composites Initiates Voluntary Chapter 11 Proceedings to Restructure and Position for Long-Term Success

TPI Composites has initiated voluntary Chapter 11 proceedings to facilitate restructuring and position the company for long-term success. The company has reached an agreement with senior secured lenders for up to $82.5 million in debtor-in-possession financing and use of cash collateral. TPI will continue operations in the normal course and aims to reach agreement with stakeholders on the terms of a plan of reorganization. The restructuring is designed to right-size the balance sheet and position the company for success in the current economic environment.

TPI Composites Inc. (TPIC), a global leader in composite solutions for wind energy and electric vehicles, has initiated voluntary Chapter 11 proceedings to facilitate a comprehensive restructuring and position the company for long-term success. The move comes amidst ongoing financial challenges and industry-wide pressures.

On August 11, 2025, TPIC announced that it had commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. The company has reached an agreement with its senior secured lenders, including funds managed by Oaktree Capital Management, for up to $82.5 million in debtor-in-possession (DIP) financing and the consensual use of cash collateral, estimated at approximately $50 million [2].

The DIP financing facility will be comprised of up to $27.5 million in new money to support TPIC's day-to-day operations and up to $55 million rolled up from its existing senior secured credit facility. This agreement underscores Oaktree's continued support for and confidence in the company.

TPIC will continue to operate normally during the restructuring process. The company aims to reach agreement with stakeholders on the terms of a plan of reorganization, which will enable it to right-size its balance sheet and compete successfully in the current economic environment. This restructuring is designed to provide access to new liquidity, allowing TPIC to continue its operations and invest in innovation.

The company has filed a number of customary motions with the Bankruptcy Court seeking court authorization to support its operations, including the payment of employee wages, salaries, and benefits. TPIC anticipates receiving Bankruptcy Court approval for these requests and intends to continue honoring its obligations to key stakeholders post-filing.

TPIC's restructuring is a strategic move to fortify its financial stability and ensure long-term benefits for its customers, suppliers, partners, and associates. The company remains committed to serving its customers and collaborating closely with its suppliers during this process.

References:
[1] Reuters, "TPIC Composites Inc. Expected to Post a Loss of 53 Cents a Share: Earnings Preview," August 4, 2025, https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TW2SY:0-tpi-composites-inc-expected-to-post-a-loss-of-53-cents-a-share-earnings-preview/
[2] GlobeNewswire, "TPI Composites Inc. Initiates Voluntary Chapter 11 Proceedings to Facilitate Restructuring," August 11, 2025, https://www.globenewswire.com/news-release/2025/08/11/3131326/0/en/TPI-Composites-Inc-Initiates-Voluntary-Chapter-11-Proceedings-to-Facilitate-Restructuring-to-Position-Company-for-Long-Term-Success.html