China's Chaori Solar creditors to meet after bond default

Jul 11, 2014 - The bondholders of Shanghai Chaori Solar Energy Science & Technology (SHE:002506) will meet on August 18 to discuss ways to recover their investment from the defaulted solar panel maker, the company's administrators said in a filing to the Shenzhen exchange on Thursday.

The meeting comes after a court started proceedings in June for bankruptcy restructuring, initiated by an application of a supplier. It is the first private company listed on the Shanghai exchange to undergo judicial administration, the court added.The local branches of law firm King & Wood Mallesons and accounting company KPMG Huazhen were appointed as Chaori Solar’s administrators.

All creditors should file their claims before August 11, the administrators added. This is the second attempt for such a meeting, after the bondholders were to gather on March 26 to discuss legal actions to force the company into paying back overdue obligations.

Troubled Chaori Solar failed to make a CNY 89.8 million (USD 14.5m/EUR 10.6m) coupon payment due in March on a CNY-1-billion bond, which marked the first default on a domestic bond in China. Hit by oversupply and price pressures in the sector It posted a third annual loss in a row and its stock was suspended from trading on the Shenzhen bourse.

(CNY 1 = USD 0.161/ EUR 0.118)

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