Panda Green bids to postpone looming payment for $350m senior notes

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Heavily-indebted solar project developer Panda Green is attempting to persuade the holders of US$350 million worth of senior notes due to mature next month to postpone settlement for two years.

The Hong-Kong listed developer, whose shareholders will vote on December 30 on whether to approve a fresh HK$1.79 billion (US$230 million) bail-out from Chinese state-owned entity Beijing Energy Investment Holding Co Ltd, is trying to avoid having to settle the US$350 million notes on January 25.

The company has proposed note holders agree to postpone payment of the 8.25% notes, and their accrued interest, for two years with the extension period offering 8% per year.

Note holders have until December 27 to decide whether to exchange the notes for new ones on January 6.

An announcement to the Hong Kong exchange outlining the proposal indicated China state-owned CMB International has been selected as dealer manager in the proposed debt restructuring. CMB, which will charge a fee of up to US$3.5 million for its services, is an indirect subsidiary of CMG, which is itself an indirect subsidiary of Panda Green main shareholder China Merchants New Energy Group Ltd.