Zorlu Enerji's dollar bonds experienced a significant drop following the announcement that the company appointed Houlihan Lokey and Servo Capital as financial advisors. This decision comes after the Turkish energy firm reported a net loss of $197 million (6 billion Turkish Lira) in the first six months of 2026. The 11% dollar bond due in 2030 fell by 4.7 points to trade at 83.4 cents on the dollar on May 14, 2026, when its Q1 results were announced, and further declined after the September 14 announcement of financial advisors. The company has a total of $1.1 billion in 11% senior guaranteed sustainability-linked notes on its books.
The appointment of Houlihan Lokey, known as the world's largest global merger and acquisition advisor by transaction volume, and Istanbul-based Servo Capital, which has been involved in $5.7 billion of financing and restructuring transactions in the last three years, indicates Zorlu Enerji is looking into comprehensive evaluations of potential financing opportunities and strategic options for its capital structure. This move is aimed at addressing the financial challenges faced by the company, including a 25% decrease in revenue during the first half of the year.
Zorlu Enerji has been under financial pressure, as evidenced by its Q1 2026 net loss of $68 million (3.07 billion Turkish Lira). Fitch had previously rated Zorlu at B+ (speculative grade) with a negative outlook in October 2025, citing concerns over the company's capital intensity and debt load. While 83% of its EBITDA comes from regulated and contracted activities, providing some stability, the substantial dollar-denominated debt in a volatile currency environment poses a risk.
