Centrosolar bond holders approved a deal at a creditors meeting on Tuesday to swap their outstanding debt from a 50 million 7% bond for 5.5 million new company shares.
Under the plan, approved, bond holders would transfer their debentures to a bank acting as a settlement agent and in return receive the right to acquire a total of 5.5 million new shares.
If all bond creditors exercise their acquisition right, they would each receive 110 new shares in the company per debenture with a nominal value of 1,000 (plus interest accrued).
The creditors meeting resolution is binding for all bond holders.
The implementation of the resolutions passed at the meeting is subject to the approval of the shareholders at the companys May 22 shareholders’ meeting.
If approved at the shareholders’ meeting, the company will implement the measures in the second half of the year.
Bond creditors will likely be able to exercise their acquisition right at the end of the third quarter. The bond will remain tradable on the Stuttgart Stock Exchange until a few days before the start of the acquisition period.
In addition, the CentroSolar creditors meeting appointed attorney Christian Becker as the bond creditors joint representative.
Centrosolar has been hit hard by the downturn in Germanys PV market. Earlier this month it posted a 46% drop in first quarter sales to 24.5 million, while operating losses grew from 4.1 million, in the same period last year, to 11 million.