Heavily-indebted Chinese project developer Singyes Solar took another step towards saving the business today when creditors unanimously accepted a restructuring of payment of the monies owed them.
The Guangdong-based developer and building-integrated PV manufacturer saw creditors vote to accept a US$8.6 million, pro rata ‘consent fee’ related to the near US$430 million owed them in defaulted senior notes and convertible bonds.
A further US$41.4 million of the monies owed will be paid up front on the same basis with new notes issued to the value of the remaining debt. The new notes will offer 2% annual interest, or 4% payment-in-kind, and 40% of their value will mature in 30 months with the balance due six months later, under the terms of the proposed debt restructure. A further caveat stipulates the debts must be settled in full in the event of Singyes de-listing from the Hong Kong exchange where its shares are traded.
The company is in default for US$260 million of 7.95% senior notes that were due to be settled this year, US$155 million related to $160 million of 6.75% notes due last year and RMB96 million ($13.6 million) of RMB930 million of 5% convertible bonds also due this year.
Singyes is able to pay the US$50 million sweetener after shareholders voted to approve a HK$1.55 billion (US$198 million) bail-out by China state-owned entity Water Development (HK) Holding Co Ltd at the start of the month.
With both deals contingent upon one another, the debt restructuring plan now has to be approved by the High Court of Hong Kong and the Supreme Court of Bermuda, the tax haven where Singyes is registered. The plan will be put before both judiciary bodies on December 4.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.