GCL note holders formally approve debt restructure


Chinese polysilicon manufacturer GCL-Poly hopes to rubber stamp the reorganization of US$500 million of defaulted senior notes on Friday after its creditors officially approved the plan at the weekend.

A meeting held in Bermuda, where the manufacturer is registered as a business, was attended by representatives of investors holding more than 92% of the value of the notes on Friday. The investors approved the scheme with only one dissenting voice, from a stakeholder who holds less than $214,000 of the finance instruments.

The creditors have agreed to accept a payment of US$50 for every US$1,000 of notes they hold, plus a pro rata share of a US$17.8 million fund plus the issuance of new notes of the same value of the original but which offer a higher, 10% return and which will mature on January 30, 2024. Under the terms of the proposed debt restructure, GCL has set aside US$4.5 million to pay the fees of Houlihan Lokey, Hogan Lovells and Moorlander Consulting Limited, which is representing certain creditors.

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The restructure is now due to be decided upon by the Supreme Court of Bermuda on Friday.

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