Singyes Solar

The heavily-indebted Chinese BIPV manufacturer has warned the petition issued by the German lender to recover a disputed $6.27 million debt could threaten the survival of the business as it would halt a planned bail-out by Beijing.

The collapse in business for the solar EPC provider after last year’s 5/31 policy announcement by Beijing has left the company’s future depending on the progress of a Chinese state bail-out. Provided that is, the business does not end up being wound up by Deutsche Bank first.

The German lender has issued a winding up petition over a $6.27 million debt and could scupper the manufacturer’s plans to restructure its defaulted payments and be taken over by a Chinese state-backed entity.

With Singyes having already announced a plan to receive a cash injection and restructure its debt, fellow Hong Kong listed solar developer Panda Green today announced plans for a Beijing coal power company to ride to its rescue.

The project developer and BIPV maker wants creditors to agree to postpone settlement of their debts for three years and will offer a financial incentive – provided a proposed Chinese state-backed bailout is voted through by its shareholders.

Stockholders in the Guangdong-based business – one the highest profile victims of Beijing’s 5/31 policy about-turn to date – were yesterday due to learn when a crucial vote on a state-sponsored Chinese bail-out of the company will take place. Publication has now been postponed until August.

Loan defaults have brought business at the solar goods maker and EPC to a halt and a lack of progress reports on its formerly lucrative project contracts means there is no immediate prospect of seeing the company’s 2018 figures.

The Chinese solar manufacturer saw revenue and profits both increase considerably last year. The company’s solar EPC business registered a 51% increase in turnover in 2016.