TPI Composites Receives Chapter 11 Approval, Begins Restructuring Process

TPI Composites, a wind blade manufacturer, has received court approval for its first-day motions in Chapter 11 bankruptcy proceedings. The company aims to restructure its debts and stabilize its finances. TPI Composites filed for bankruptcy to address its financial challenges and continues to operate during the restructuring process. The company seeks to reduce its debt burden and emerge from bankruptcy with a more sustainable financial structure.

TPI Composites, Inc. (NASDAQ: TPIC), a wind blade manufacturer, has received court approval for its first-day motions in Chapter 11 bankruptcy proceedings. The Scottsdale-based company, which manufactures composite wind blades for wind turbine manufacturers, filed for bankruptcy to address its financial challenges and continues to operate during the restructuring process. The company seeks to reduce its debt burden and emerge from bankruptcy with a more sustainable financial structure.

The company has reached an agreement with senior secured lenders affiliated with Oaktree Capital Management for up to $82.5 million in debtor-in-possession financing [1]. This financing includes $27.5 million in new money and $55 million rolled up from the company’s existing senior secured credit facility. TPI has also secured approval for the use of approximately $50 million in cash collateral to support ongoing operations during the restructuring process [1].

In recent weeks, TPI Composites reported a larger-than-expected loss for the first quarter. The financial results surprised analysts and led to a notable reaction in the market. Meanwhile, Jefferies adjusted its price target for TPI Composites, raising it to $0.70 from $0.50, while maintaining an Underperform rating [1]. TD Cowen downgraded TPI Composites from Buy to Hold, lowering the price target to $1.00 from $2.00 [1]. These developments reflect ongoing challenges for TPI Composites amidst policy risks and capital structure issues.

The wind industry has faced significant hurdles in recent years, including economic and political challenges. Inflation and supply-chain hiccups prompted project delays and cancellations even before US President Donald Trump returned to office. Now, the industry is grappling with several White House moves to arrest the growth of renewable power [2].

TPI Composites operates factories in the U.S., Mexico, Türkiye, and India, with additional engineering development centers in Denmark and Germany. The company aims to reach an agreement with stakeholders on a plan of reorganization that will allow it to right-size its balance sheet and compete effectively in the current economic environment [1].

References:
[1] https://www.investing.com/news/company-news/tpi-composites-files-for-chapter-11-bankruptcy-secures-825-million-dip-93CH-4183853
[2] https://www.bloomberg.com/news/articles/2025-08-11/wind-blade-maker-tpi-composites-files-for-bankruptcy-in-texas