Chinese solar project developer and building-integrated PV (BIPV) manufacturer Singyes Solar will attempt to turn the page on a damaging two-year spell by changing the company name in the wake of a state bail-out.
The Water Development (HK) Holding Co Ltd business which is part of the Beijing-owned Shuifa Group Co Ltd construction conglomerate, recently pumped HK$1.55 billion (US$198 million) into Singyes, enabling it to negotiate a debt restructuring arrangement with the holders of almost US$430 million of defaulted senior notes and convertible bonds.
Water Development now holds 66.92% of the stock in the enlarged entity and Shuifa nominee Zheng Qingtao has replaced under-fire shareholder Liu Hongwei as chairman of the business, with Liu now vice-chairman. Four more Shuifa nominees joined the board to replace outgoing directors who left as part of the state bail-out.
Although Singyes does not appear to have confirmed the High Court of Hong Kong and the Supreme Court of Bermuda – in the tax haven where Singyes is registered – approved the debt restructuring deal agreed with creditors when it was set to be put before them on Wednesday, both jurisdictions were expected to rubber-stamp the arrangement as a formality.
On Friday, the reconstituted company announced it plans to call a special general meeting to ask shareholders to vote on a proposal to rename the business China Shuifa Singyes Energy Holdings Ltd.
The Hong Kong-listed solar project developer appeared to be riding the wave of subsidized generation capacity development in China during the solar boom but suffered a near-disastrous reverse in fortunes after being caught cold by Beijing’s decision to rein in public solar subsidies abruptly at the end of May last year.