PV manufacturers unable to live with proposed new quality guidelines and project developers alike are set to be squeezed out by the state in the world’s biggest solar market, according to Frank Haugwitz, who has compiled a market update as preparations for the next five-year plan gather pace.
The state-owned construction business which saved Singyes Solar with a US$200 million bail-out is now preparing to invest in a 75% stake in debt-saddled peer China Solar, whose shares have been unlisted since August 2013.
A rebranded Singyes Solar was able to stave off a debt default meltdown last year thanks to a $200 million cash injection from the state but the turnaround appears to have come at a hefty cost in longer-term borrowings and employees.
The board of bailed-out Singyes Solar has bought back $18.4 million worth of notes issued in Singapore in late December and also hoovered up $240,000 worth which were unclaimed in the fundraising round.
The construction group, which indirectly owns 67% of the solar developer will pay the funds to complete the $98m sale of two 50 MW solar farms in China to a third-party soon to also be controlled by Shuifa.
The Beijing-owned electric utility is still carrying out due diligence of solar project assets in the GCL New Energy portfolio, having walked away from a full state bail-out of the GCL business last month.
Now Chinese state-owned, the developer appears to want to draw a line under a traumatic two-year period which saw its fortunes reversed in dramatic fashion. Effectively now part of China’s Shuifa construction conglomerate, the proposed new name is intended to reflect the fact.
There was unanimous approval at a vote on the debt reorganization plan put before creditors in Hong Kong today and now it remains only for the scheme to be rubber-stamped in the territory – and in Bermuda – before the task of rebuilding the soon-to-be-state-owned business can begin.
The Chinese solar manufacturer will pay the lender an undisclosed sum if its creditors vote, as expected, to back a debt reorganization scheme which will, in turn, unlock a state bail-out of the company by Beijing.
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