New hold-up in GCL project business’ $155m asset sale

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Debt-laden Chinese solar project developer GCL New Energy has been forced to delay the release of details relating to a shareholder vote on the sale of a 294 MW portfolio in its homeland.

The Hong Kong-listed developer hopes to sell seven of its Chinese project company subsidiaries to two funds owned by the Hong Kong division of Chinese state-owned electric utility China Huaneng.

The proposed sale would generate a net RMB1.08 billion (US$155 million) for GCL New Energy and remove RMB2.66 billion of liabilities from its huge debt pile.

Mainland power company China Huaneng in November walked away from a proposed bail-out that would have seen it acquire 51% of GCL New Energy, instead opting to acquire some of the developer’s generation assets.

The proposed project transfer is subject to votes by shareholders at GCL New Energy as well as its GCL-Poly parent company.

Details of when the votes are due to be held were supposed to have been released by today at the latest but that deadline has now been pushed back to February 28.