Singyes Solar shares suspended as it misses first-half results deadline

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Under-fire solar manufacturer and project developer Singyes Solar has attempted to reassure investors its Chinese state-backed bailout and associated debt restructuring plans are on course.

However, the Hong Kong-based company this morning had trading in its shares suspended until it can produce its first-half results.

Singyes this morning released a statement to the Hong Kong stock exchange explaining that the delay involved in publishing its results for last year had had a knock-on effect on preparation of first-half figures which were due for publication on or before Saturday.

The company stated: “The company endeavors to publish the 2019 interim results as soon as [is] practicable.”

The developer on Friday said it had overcome a significant hurdle in plans to push through a takeover by mainland state entity Water Development (HK) Holding Co Ltd. Singyes has secured permission for an exemption from the usual takeover practice such that Water Development will not be required to make an offer to purchase all of the shares in Singyes subsidiary China Singyes New Materials Holding Ltd as a result of the takeover of the parent.

Bail-out

Under the terms of the bail-out, Water Development is due to invest HK$1.55 billion (US$198 million) to acquire a 66.92% holding in an enlarged Singyes.

Singyes also updated investors on the progress of its attempts to restructure almost US$430 million of debt in the form of defaulted senior notes and convertible bonds. The company said holders of 98.4% of that debt had signed up to a plan to defer settlement through the issuance of new notes to the same value. The statement made no mention of the fact Deutsche Bank’s Hong Kong business has issued a winding up petition against the company over a US$6.27 million debt which Singyes disputes. The petition is due to be heard in the Hong Kong High Court on October 2.

The developer pledged to outline details by October 4 of the special general meeting required to issue the stock to complete the mooted bail-out.

Friday’s update also revealed Singyes holds a 384 MW slice of the 22.79 GW of solar generation capacity for which China’s National Energy Administration will this year grant public subsidies determined under a reverse bidding process.

According to Singyes, that rates the developer ninth among the corporations to have secured subsidized capacity this year.

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