Sino Alliance

Covid-19 has left Shunfeng International’s accountants unable to publish its official 2021 numbers on time, but its estimated figures announced a net current liability of almost $155 million and a “capital deficiency” of near $140 million.

The developer is aiming to resume trading in its stock tomorrow ahead of a shareholder vote this month which could remove more than half of the $220 million it owes creditors in overdue payments.

Heavily-indebted Shunfeng International could be set for another big sell off of solar assets as it tries to pay down a near-$300 million overdue debt pile.

Creditor Chongqing, which has been owed more than $100 million by the embattled developer for 14 months, will force through a sale of 180 MW of solar capacity to a third party. Shunfeng had originally wanted to sell the projects to Chongqing six years ago.

The company is planning another sell-off of solar projects, with two solar farms with a total generation capacity of 93 MW earmarked for divestment to state-owned China National Nuclear Power – provided the sites can come up with their rent arrears.

The proposed sale of seven solar farms in China will raise more than $80 million for the heavily indebted developer, which this morning confirmed trading in its stock had resumed after a nine-day hiatus.

Shunfeng International wants shareholders to wave through the sale of a business unit which offered a rare positive update in its last set of annual accounts. The parent wants to accept an offer for the operation from a company controlled by one of the directors of the seller.

SFCE is scrambling to keep creditors at bay and has been unable to guarantee more than half the windfall it expects from selling off 140 MW of Chinese project capacity will actually be paid.

The planned disposal of more than a third of the Chinese solar company’s project portfolio would take a significant chunk out of its debt mountain but trading in company stock was halted this morning, pending an announcement in relation to the project sale. Shunfeng sold off German PV project monitoring business meteocontrol to another operation owned by its main shareholder at the end of last year.