REC issues shares, restructures debt and writes down inventory22. June 2012 | Markets & Trends, Industry & Suppliers | By: Jonathan Gifford
Norway-based manufacturer REC carried out major financial restructuring today, issuing almost 870,000 million new shares, in an attempt to raise NOK1.3 billion (US$218 million). REC also refinanced its revolving debt facilities, into a NOK2 billion (US$335 million) facility.
REC carried out some balance sheet acrobatics today, restructuring debt and announcing major impairment charges in the form of inventory and plant write downs, onerous contracts and up-front payments. Bloomberg has reported that its share price has dropped by as much as 30 percent today.
Charges amounting to NOK3.5 billion (US$586 million) – from its Singapore operations – and NOK750 million (US$126 million), to be realized in Q2, were some of the most startling figures released today by REC.
REC Wafer Norway AS was also permitted by bond holders to resign as guarantor under REC’s senior bond agreement. This was the second meeting of REC bondholders that had attempted to do this. At the previous board-holder meeting, on June 7, quorum was not reached. On the back of the move, REC announced that it would cease further funding of REC Wafer Norway AS
In what could be interpreted as a display of solidarity, REC declared that board member Peter Ruzicka, "and related parties" bought 500,000 REC shares. Bloomberg reported that the Ruzicka-controlled company, Canica AS, bought 106.7 million shares with REC Chairman Jens Ulltveit-Moe’s company, Umoe AS, purchasing 266.7 million.
Keep your finger firmly on the photovoltaic pulse: sign up for our daily newsletter
- 2257 views
- 2191 views
- 1889 views
- 1788 views
- 1635 views
Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!