Panda Green extends deadline for accepting debt restructuring proposal

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Chinese solar developer Panda Green’s race to meet a January 25 deadline to honor US$350 million of senior notes appears set to go down to the wire after the deadline for accepting a delayed payment was extended.

The heavily-indebted, Hong Kong-listed solar project developer has proposed postponing settlement of the 8.25% interest-bearing notes for two years, with 8% interest paid over the extension period.

However, having announced holders of the notes would have until last Friday to accept the offer, Panda Green today announced the deadline has been extended until January 14.

On Monday, the publicly-owned business announced shareholders had approved the company’s latest bail-out from Beijing. State-owned Beijing Energy Investment Holding Co Ltd will acquire a 30.39% stake in the company with a shares subscription worth HK$1.79 billion (US$230 million).

The change in ownership makes Beijing Energy Investment the major shareholder in Panda Green, which is now 72.44% owned by Chinese state entities, including a company which specializes in distressed debt.