Chinese clean energy giant Hanergy Holdings wants to extend the maturity date of HK$847.5 million (US$109 million) of convertible bonds issued by its solar subsidiary to retain the cash for ‘business development and general working capital.'
While stressing, in a submission to the Hong Kong Stock Exchange on Saturday, the Hanergy Solar Group module equipment manufacturer has enough cash to honor the bonds, the solar company stated it would prefer to extend the payment deadline.
The fact the bonds are held by two companies themselves owned by the Hanergy Holdings parent group investment companies GL Wind Farm and China Genco should ease the proposal to extend the maturity date from November 25 this year to December 31, 2014.
But the proposed amendment will have to be approved by the company's independent shareholders which, according to the Hanergy Solar statement, hold 37.17% of the company's shares at a special general meeting by November 30 ‘or such other date as the company and the bondholders may agree.'
GL Wind Farm owns HK$419.8 million of the convertible bonds and China Genco holds a further HK$427.7 million.
According to Hanergy Solar, Hanergy Holdings owns 62.76% of the solar subsidiary which has recently moved into solar project development and would own 66.81% if the convertible bonds were vested.
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