The planned disposal of greater than a 3rd of this Chinese solar company’s task portfolio would simply simply simply take an important amount away from its financial obligation hill but trading in business stock ended up being halted today, pending an statement pertaining to the task purchase. Shunfeng sold down German PV project monitoring company meteocontrol to another procedure owned by its primary shareholder at the conclusion of just last year.
Shunfeng is among the Chinese solar developers shuffling all over cash in an attempt 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 around 540 MW of the solar task ability.
The business has already established a busy time from it since our final up-date in-may this past year whenever the level of their financial obligation hill ended up being revealed with its full-year numbers for 2018.
Subsequently, a proposed sale of its Jiangsu Shunfeng Photovoltaic tech Co Ltd to a small business owned by Shunfeng major shareholder Cheng Kin Ming has helped relieve some issues additionally the business now aims to downer off 11 of its Chinese solar task organizations to make benefits well well worth another RMB1.63 billion (US$232 million).
Wuxi Suntech and meteocontrol
The sale of Jiangsu Shunfeng into the Asia Pacific Resources Development Investment Ltd company owned by Chen Kin Ming asian wives in raised an immediate RMB200 million to pay off 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 also paid other debt interest of RMB110 million as well as settling payables worth around RMB65.7 million december.
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 take on responsibility of HK$1.2 billion (US$154 million) regarding the HK$2.5 billion owed by Shunfeng to Sino Alliance and saw the Peace Link company also 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 also saw Asia Pacific hand over RMB1.75 billion Shunfeng owed to your subsidiary it absolutely was attempting to sell so your money could be passed on then to Jiangsu Shunfeng.
The business had signed over its 59% stake in its Lattice Power Group LED electronic components business to the Hong Kong branch of lender China Minsheng Banking Corp Ltd by the time Hong Kong-listed Shunfeng announced plans to raffle off more than a third of its 1,496 MW of solar project capacity in China to a largely Chinese state-owned buyer in November. Beneath 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 the funds raised with a projected purchase of 300 MW of task capability this past year plus HK$300 million by July 15 this current year plus the stability associated with HK$980 million by December 18.
Loans from banks
During the exact same time, Sino Alliance consented the HK$1.3 billion it absolutely was owed separate through the Jiangsu Shunfeng deal might be settled with HK$500 million or half the profits of this mooted 300 MW task purchase this past year in addition to the stability by the finish for this 12 months.
Pv mag is not in a position to establish whether any 300 MW project purchase occurred this past year or whether Shunfeng rather discovered another means to fulfill the 2 loan providers.
On November 26, the 69.5% state-owned China National Nuclear Corporation decided to spend RMB641 million for 11 Chinese Shunfeng task businesses plus RMB788 million in payables owed because of the jobs 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 financial obligation repayments and RMB226 million for functional costs.
Provided today’s halt in trading will not relate with a hiccup into the project purchase, that will leave Shunfeng just RMB430 million and HK$1.57 billion in short supply of settling the temporary debts it said in November so it owed because of the conclusion of this past year.