By Josh Beckerman

Wind-blade maker TPI Composites said it filed for chapter 11 bankruptcy after facing macroeconomic headwinds and operational and regulatory challenges.

Shares were down 38% after hours to 18 cents.

Oaktree Capital Management, which agreed to provide a debtor-in-possession financing facility of up to $82.5 million, is expected to become TPI's owner.

TPI said it will continue to operate normally and doesn't expect any material operational effects from the chapter 11 proceedings. TPI said on its website that it expects holders of common stock won't receive distributions and that the equity will be canceled.

In May, the company said it initiated a strategic review. At the time it said, "The various economic challenges presented in the markets where we operate continue to create uncertainty in the industry's near-term outlook and continue to challenge our operations."

In early July, TD Cowen downgraded TPI to hold from buy, saying the planned ending of certain incentives under the One Big Beautiful Bill created a demand cliff. "The risk of demand compression post-2027 fundamentally alters our outlook and, when overplayed with a challenging balance sheet, we feel it is prudent to move to the sidelines," the firm said, reducing its price target to $1 from $2.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

August 11, 2025 18:02 ET (22:02 GMT)

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