(ADPnews) - Dec 21, 2010 - The creditors of German solar power company Conergy AG (ETR:CGY) have agreed on a substantial reduction of the company’s debt, with some creditors providing equity capital, Conergy said on Friday.
According to the refinancing package Conergy’s debt will be reduced by EUR 188 million (USD 247.5m), significantly lowering the company's future interest burden. The remaining EUR-135-million credit facility has been extended by another four years, the company said.
In line with the new concept, Conergy's equity capital will initially be reduced to EUR 50 million from just under EUR 400 million. The company will then launch a capital hike of up to EUR 188 million, including the subscription rights of the existing shareholders. If these subscription rights are exercised, Conergy will use the proceeds to reduce the existing lines of credit by the corresponding amount. If the subscription rights are not exercised, several creditors have pledged to contribute their loan receivables from Conergy as a non-cash contribution up to a nominal amount of EUR 188 million, which for this purpose should be set at 60% of their nominal value, in exchange for shares.
These measures will be decided at an extraordinary general meeting scheduled for the start of 2011, Conergy said.
(EUR 1.0 = USD 1.316)
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