GCL-Poly, GNE to sell 790 MW of Chinese solar plants to reduce debt

• Chinese polysilicon maker GCL-Poly Energy Holdings Ltd (HKG:3800) and its troubled solar plants running device GCL New Energy Holdings Ltd (HKG:0451), or GNE, are preparing to offer interests in 790 MW of solar assets to an unit of China Three Gorges Group Co Ltd

Particular subsidiaries of GCL-Poly and also GNE have actually agreed to market to Three Gorges Asset Management Co Ltd their stakes, some full as well as some partial, in firms that possess an overall of 11 functional solar power plants in China. This will certainly be performed in two deals-- one covering six solar parks totalling 321 MW and one more involving 5 centers amounting to 469 MW.

The vendors stated that this move belongs to GCL-Poly's approach to embrace an asset-light version. By getting rid of the solar plants in the first deal, the group will minimize its obligations by concerning CNY 1.294 billion (USD 198.4 m/EUR 167.7 m) as well as secure some CNY 927.6 million in cash money for additional debt repayments. The 2nd purchase will certainly reduce the group's responsibilities by a more CNY 4.253 billion as well as bring in an added CNY 1.385 billion in cash money for that very same function.

The asset disposals are pending clearance by GCL-Poly as well as GNE's investors.

As previously reported, GNE defaulted on USD 500 million (EUR 423m) well worth of 7.1% senior notes on January 30, 2021. Less than 2 weeks later on, holders of 91.85% of the defaulted senior notes authorized a debt restructuring plan that set January 30, 2024 as the new maturity day.