REC issues shares, restructures debt and writes down inventory

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.

Share

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.

Popular content

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.

Share

Jonathan Gifford

Jonathan is the Founding Editor of pv magazine Australia. Jonathan joined pv magazine in 2011 and became the Editor in Chief in 2014.

More articles from Jonathan Gifford

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

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.