Netherlands-based solar-energy equipment manufacturer Enstall, backed by Blackstone and Rivean Capital, has appointed PJT Partners as financial advisor amid rising debt and liquidity pressures, according to 9fin sources.

A group of lenders, which recently tapped Milbank for legal counsel, is also expected to bring in a financial advisor shortly, the sources said.

Enstall carries more than €1.2bn of debt, including a €600m term loan, a €200m delayed draw term loan, a $375m term loan B — all due in 2028 — and a $120m revolving credit facility (RCF) that matures in August 2026.

Access to the RCF is already constrained by a currently suspended net-leverage covenant, which limits maximum leverage to 7.5x when drawings exceed €51.2m.

When covenant testing resumes on 31 March 2026, Enstall is widely expected to fall out of compliance, restricting liquidity further and complicating any refinancing effort, the sources said.

Furthermore, the company’s term loan B continues to trade well below par, a sign investors are pricing in a heightened probability of restructuring, the sources added.

Enstall has been weighed down by persistent cash burn, soft operating performance, and negative free cash flow, driven by a steep decline in rooftop-solar demand across its key European markets. The business has reported weaker-than-expected earnings since early 2024, as lower installation volumes and margin pressure eroded operating leverage, the sources said.

In September, S&P cut Enstall’s credit rating deeper into junk territory, citing an increased risk that the company may be forced into a debt restructuring or distressed exchange.

The rating was lowered one notch to CCC, with a negative outlook, reflecting S&P’s view that Enstall’s capital structure is unsustainable. The agency highlighted that the company’s €70m of adjusted EBITDA is insufficient to cover about €120m of annual interest and scheduled debt repayments.

S&P also forecasts free operating cash flow to remain negative through 2025 and 2026, putting additional strain on liquidity.

Headquartered in Amsterdam, with additional operations in Deventer in the Netherlands and Greenwich, Connecticut, Enstall designs, manufactures and sells mounting systems used to install solar panels on residential and commercial rooftops.

Dutch private equity firm Rivean Capital acquired Enstall — at the time known as Esdec — in 2018, investing alongside the management team. In June 2022, Blackstone made a significant strategic investment in the company, while Rivean retained a stake in the business.

In August 2024, Enstall acquired German solar-mounting systems provider Schletter, which was controlled by private-equity firms Avenue Capital and Robus Capital.

Following the deal, Avenue and Robus became minority shareholders in Enstall, with a combined stake of approximately 24%, while Blackstone and Rivean retained each roughly 33% and management about 9%.

Blackstone, Avenue, and PJT declined to comment. Enstall, Rivean, and Robus did not respond to requests for comment.

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