Crucial Chinese solar portfolio sale held up a third time

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Heavily indebted solar project developer GCL New Energy will have to wait longer for the sale of 294 MW of its Chinese portfolio after the transaction was postponed for a third time.

Details of the vote required from GCL New Energy shareholders, as well as investors in parent company GCL-Poly, were yesterday postponed until April 30.

The paperwork related to the RMB1.08 billion ($152 million) solar project sale, which would also wipe RMB2.66 billion of further commitments off the seller’s balance sheet, were originally supposed to be published by Feb. 13. They were initially held up until Feb. 28 and then until yesterday.

The proposed project sale to state-owned China Huaneng follows the buyer’s decision to walk away, in November, from a full takeover of the debt-saddled project development arm of Hong Kong-listed polysilicon manufacturer GCL-Poly.

Both GCL-Poly and the GCL New Energy business published their full-year results for 2019 on the Hong Kong exchange yesterday.