Singyes averts winding-up petition by settling with Deutsche Bank

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The light at the end of the tunnel just got a little brighter for embattled solar project developer Singyes Solar after it reached agreement to head off a winding-up petition against the company.

There has been radio silence from the Hong Kong High Court for eight days since Deutsche Bank Hong Kong was due to present a petition to wind-up the solar company over a US$6.27 million debt the Chinese company disputed.

The reason became clear this morning as Singyes announced it had reached agreement with the lender yesterday to stave off the attempt to close the business. Singyes will pay “an agreed sum” to the lender upon completion of its debt restructuring plan, which creditors are due to vote on in 13 days’ time.

In return for the undisclosed settlement, the Hong Kong branch of the German bank has agreed not to put a spanner in the works when the holders of almost US$430 million of defaulted senior notes and convertible bonds vote on whether to accept delayed payment of the monies owed.

With Singyes shareholders having approved a HK$1.55 billion (US$198 million) bail-out of the business by Chinese state-owned Water Development (HK) Holding Co Ltd, the turnaround of the company now all hinges on the creditor vote on November 25.

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