Shunfeng stops trading ahead of 540 MW project capability sale

• The intended disposal of greater than a 3rd of the Chinese solar business's project profile would certainly take a substantial piece out of its financial debt hill yet trading in business supply was stopped today, pending a news in connection with the project sale. Shunfeng sold German PV project tracking organisation meteocontrol to an additional procedure had by its major investor at the end of in 2014.

Chinese solar business Shunfeng International Clean Energy revealed a stop in trading in its shares today, pending a statement associated with a fire sale of around 540 MW of its solar project capability.

When the level of its financial debt hill was disclosed in its full-year numbers for 2018, the business has actually had an active time of it because our last upgrade in May last year.

Ever since, a suggested sale of its Jiangsu Shunfeng Photovoltaic Technology Carbon Monoxide Ltd to a service had by Shunfeng significant investor Cheng Kin Ming has actually aided alleviate some problems and also the business currently intends to liquidate 11 of its Chinese solar project firms to make advantages worth an additional RMB1.63 billion (US$ 232 million).

Wuxi Suntech as well as meteocontrol

The sale of Jiangsu Shunfeng to the Asia Pacific Resources Development Investment Ltd organisation had by Chen Kin Ming in December increased an instant RMB200 million to repay RMB24.7 million financial obligations owed by Shunfeng to Shanghai Dazong Financial Leasing Carbon Monoxide Ltd, COSCO Shipping Leasing Carbon Monoxide Ltd as well as Cinda Financial Leasing Carbon monoxide Ltd as well as likewise paid various other financial debt passion of RMB110 million along with resolving payables worth around RMB65.7 million.

The Jiangsu Shunfeng sale-- that included the transfer of German solar project checking firm meteocontrol GmbH and also PV plant monitoring system Solarstrom AG plus the Wuxi Suntech brand name to Asia Pacific Resources-- additionally saw the customer tackle duty of HK$ 1.2 billion (US$ 154 million) of the HK$ 2.5 billion owed by Shunfeng to Sino Alliance as well as saw the Peace Link service likewise had by Cheng Kin Ming abandonment civil liberties to HK$ 1.95 billion owed it by Shunfeng under an exchangeable bond issuance. The bargain likewise saw Asia Pacific turn over RMB1.75 billion Shunfeng owed to the subsidiary it was offering to ensure that the cash can after that be handed down to Jiangsu Shunfeng.

By the time Hong Kong-listed Shunfeng introduced strategies to raffle off greater than a 3rd of its 1,496 MW of solar project ability in China to a mostly Chinese state-owned purchaser in November, business had actually transferred its 59% risk in its Lattice Power Group LED digital elements service to the Hong Kong branch of lending institution China Minsheng Banking Corp Ltd. Under the regards to that HK$ 980 million financial debt reconstruction, the financial institution in August accepted approve the Lattice holding, a HK$ 60 million deposit and afterwards the highest possible of either HK$ 270 million or 20% of the funds elevated by a forecasted sale of 300 MW of project capability in 2014 plus HK$ 300 million by July 15 this year and also the equilibrium of the HK$ 980 million by December 18.

Small business loan

At the same time, Sino Alliance concurred the HK$ 1.3 billion it was owed different from the Jiangsu Shunfeng deal could be settled with HK$ 500 million or half the earnings of the mooted 300 MW project sale in 2015 plus the equilibrium by the end of this year.

pv magazine has actually not had the ability to develop whether any type of 300 MW project sale occurred in 2014 or whether Shunfeng rather discovered an additional method to please both loan providers.

On November 26, the 69.5% state-owned China National Nuclear Corporation consented to pay RMB641 million for 11 Chinese Shunfeng project business plus RMB788 million in payables owed by the projects to Shunfeng and also RMB197 million in project returns for the vendor. Those sales, authorized by independent Shunfeng investors, result from increase RMB1.4 billion for financial debt payments and also RMB226 million for functional expenditures.

Offered today's stop in trading does not connect to a misstep in the project sale, that would certainly leave Shunfeng just RMB430 million as well as HK$ 1.57 billion except clearing up the short-term financial obligations it stated in November that it owed by the end of in 2014.