China's Chaori Solar to undergo restructuring - report

Aug 20, 2014 - The administrators of Shanghai Chaori Solar Energy Science & Technology (SHE:002506) are expected to prepare a restructuring plan and appoint a restructuring agent, according to a document presented to bondholders and seen by Bloomberg on Tuesday.

The troubled photovoltaic (PV) panel maker failed to make the full CNY 89.8 million (USD 14.6m/EUR 11m) coupon payment due in March on a CNY-1-billion bond, which marked the first default on a domestic bond in China. In June, a Chinese court started proceedings for the firm’s bankruptcy restructuring upon the request of a supplier.

Ding Guixiang, one of Chaori Solar’s bondholders, told Bloomberg by phone that the company’s creditors have approved an asset management plan on Tuesday that will see the administrators shed some of its assets at an appropriate time. The Chinese firm has assets in China, Italy, Greece, the US and Bulgaria.

Among Chaori Solar's creditors are the Agricultural Bank of China (HKG:1288), China Construction Bank (HKG:0939), China Cinda Asset Management (HKG:1359) and China Citic Bank (HKG:0998).

(CNY 1.0 = USD 0.163/EUR 0.122)

Choose your newsletter by Renewables Now. Join for free!