Chaori Solar restarts PV panel making - report

Aug 29, 2014 - Shanghai Chaori Solar Energy Science & Technology (SHE:002506) has resumed production of photovoltaic (PV) panels at its factory in Shanghai, Bloomberg said Thursday, citing vice president Liu Tielong.

The troubled firm ceased work at its Shanghai plant in April after it failed to make the full CNY 89.8 million (USD 14.6m/EUR 11.1m) coupon payment on a CNY-1-billion bond by the due date, March 7. This turned Chaori Solar into the first company to default on the bond market in China. In June, a Chinese court started proceedings for the firm’s bankruptcy restructuring upon the request of a supplier.

Chaori Solar has outsourced its PV cell production operations to three sector players, 21st Century Business Herald said earlier, quoting unnamed sources.

At present, the Chaori Solar is continuing with its restructuring talks with the Chinese government. Ding Guixiang, one of the firm’s bondholders, told Bloomberg last week that creditors have approved an asset management plan that will see the administrators shed some of Chaori Solar's assets at an appropriate time. The Chinese firm has solar power generation assets in China, Italy, Greece, the US and Bulgaria.

(CNY 1.0 = USD 0.163/EUR 0.124)

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