'Stressed' floating wind pioneer Hexicon gets financing breathing space
Swedish group extends credit facility after boost from earlier regulatory approvals in South Korea
Floating wind pioneer Hexicon extended a SKr75m ($6.8m) credit facility after its CEO previously pledged action to help stabilise its “stressed” financial position.
Hexicon told investors it has extended the short-term facility, which expired on 31 December, for a further six months.
Sweden-based Hexicon, which had earlier described its financing situation as “stressed”, has pledged its shares in Hexicon Korea as additional collateral as part of the credit facility extension, which was arranged with Wallstreet Aktiebolag and a group of private financiers.
The group, whose interests span floating wind technology and development activities, told investors the extension “enables Hexicon to proceed with divestments and focus on its other strategic priorities”.
The company’s shares spiked as much as 25% in early trading following the announcement – but are still a shadow of their former level after losing more than 70% of their value over the last year.
Thor in December announced a plan to address the “new reality” that includes a focus on the most promising projects, an end to plans to enter the US and a review of costs across its business.
Hexicon will also look for a site-sharing partner at its TwinHub floating wind project in the UK.
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