Is Beijing getting cold feet when it comes to bailing out its heavily-indebted solar companies?
State-owned China Huaneng Group Hong Kong Ltd walked away from its proposed acquisition of a 51% stake in indebted solar project developer GCL New Energy Holdings in November and now peer Panda Green could be about to suffer the same fate.
Shareholders in the debt-saddled project developer voted through a proposed HK$1.79 billion (US$230 million) bail-out by state-owned Beijing Energy Holdings Co Ltd at the end of last year as Panda Green scrambled to raise the cash to settle US$350 million of 8.25% senior notes due to mature on January 25.
Already largely owned by Chinese public entities, the anticipated windfall would have gone a big way towards raising the money required, in return for a 32% stake in the enlarged company.
The result of the shareholder vote indicated the bail-out would be completed on or before January 6. However, Hong Kong-listed Panda Green was forced to acknowledge yesterday the holders of only US$108 million of those notes had taken up its offer to postpone settlement for two years in return for new 8% notes during the interim.
With that response leaving the developer needing to raise US$242 million in ten days – now nine – from third-party “loans and/or bonds”, Panda Green today revealed the completion date had at some point been extended until yesterday – the date chalked in for the results of the debt restructuring proposal.
Even more ominously, that crucial bail-out date has now been pushed back again, to February 18, with the stock market update indicating both delays had become necessary to obtain the “government approvals” necessary.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.