Shunfeng halts exchanging in front of 540 MW task capability purchase

The planned disposal of greater than a 3rd associated with the Chinese solar company’s task portfolio would simply just take an important amount away from its financial obligation hill but trading in business stock had been halted this morning, pending a statement in terms of the task purchase. Shunfeng sold down German PV project business that is monitoring to another procedure owned by its main shareholder at the conclusion of this past year.

Shunfeng is amongst the Chinese solar developers shuffling round the cash to try to keep carefully the wolf through the home.

Chinese solar business Shunfeng Global Clean Energy announced a halt in trading with its stocks this early early morning, pending a statement pertaining to a fire purchase of approximately 540 MW of the solar task capability.

The business has already established a busy period from it since our final enhance in-may a year ago whenever the level of its financial obligation hill was revealed in its full-year numbers for 2018.

Ever since then, a proposed sale of its Jiangsu Shunfeng Photovoltaic tech Co Ltd to a company owned by Shunfeng shareholder that is major Kin Ming has helped relieve some issues therefore the company now is designed to sell down 11 browse this site of its Chinese solar task businesses to make benefits well well well worth another RMB1.63 billion (US$232 million).

Wuxi Suntech and meteocontrol

The purchase of Jiangsu Shunfeng towards the Asia Pacific Resources Development Investment Ltd company owned by Chen Kin Ming in December raised an instantaneous RMB200 million to settle RMB24.7 million debts owed by Shunfeng to Shanghai Dazong Financial Leasing Co Ltd, COSCO Shipping Leasing Co Ltd and Cinda Financial Leasing Co Ltd and in addition paid other financial obligation interest of RMB110 million along with settling payables worth around RMB65.7 million.

The Jiangsu Shunfeng purchase – which included the transfer of German solar project monitoring business meteocontrol GmbH and PV plant administration unit Solarstrom AG plus the Wuxi Suntech brand name to Asia Pacific Resources – additionally saw the customer simply simply simply take on responsibility of HK$1.2 billion (US$154 million) associated with HK$2.5 billion owed by Shunfeng to Sino Alliance and saw the Peace Link company additionally owned by Cheng Kin Ming surrender liberties to HK$1.95 billion owed it by Shunfeng under a bond issuance that is convertible. The offer additionally saw Asia Pacific hand over RMB1.75 billion Shunfeng owed to your subsidiary it absolutely was attempting to sell so your cash could then be offered to Jiangsu Shunfeng.

By the time Hong Kong-listed Shunfeng announced intends to raffle down a lot more than a 3rd of the 1,496 MW of solar task ability in Asia up to a mostly Chinese state-owned customer in November, the company had finalized over its 59% stake in its Lattice energy Group LED electronic components company towards the Hong Kong branch of loan provider China Minsheng Banking Corp Ltd. Underneath the regards to that HK$980 million financial obligation reorganization, the financial institution in August consented to accept the Lattice holding, a HK$60 million advance payment after which the best of either HK$270 million or 20percent associated with funds raised by way of a projected purchase of 300 MW of task capability this past year plus HK$300 million by July 15 in 2010 as well as the stability of this HK$980 million by December 18.

Loans from banks

During the exact same time, Sino Alliance agreed the HK$1.3 billion it had been owed split through the Jiangsu Shunfeng deal might be settled with HK$500 million or half the proceeds of this mooted 300 MW task sale this past year as well as the balance by the conclusion of this 12 months.

Pv mag is not in a position to establish whether any 300 MW task purchase occurred year that is last whether Shunfeng alternatively discovered another means to meet the 2 lenders.

On November 26, the 69.5% state-owned Asia nationwide Nuclear Corporation decided to pay RMB641 million for 11 Chinese Shunfeng task organizations plus RMB788 million in payables owed because of the tasks to Shunfeng and RMB197 million in task dividends for the vendor. Those product product sales, authorized by separate Shunfeng shareholders, are due to improve RMB1.4 billion for debt repayments and RMB226 million for functional expenses.

Provided halt that is today’s trading will not relate solely to a hiccup when you look at the task purchase, that will leave Shunfeng just RMB430 million and HK$1.57 billion in short supply of settling the short-term debts it stated in November so it owed because of the conclusion of this past year.