Polaris solar PV net news: China PV industry restructuring to shuffle, and a landmark event: debt-spiral *ST Suri recently identified by the Jiangsu Golden Concord energy limited (“Jiangsu GCL”) consisting of 9 units of association as reorganization of management investors. In the view of the industry, Jiangsu, GCL, is another step in its layout of PV industry chain pieces, is behind the rise in industry concentration degree of reality.
GCL-led restructuring of Jiangsu *ST Suri
After three months of consultations, mired in debt default of *ST Super day Yu October 8 throws has a copies restructuring plans draft, to capital public product of equity premium turned increased equity 1.68 billion unit, Jiangsu Association Xin, and jiaxing long Yuan, and Shanghai an Bo, and Beijing Qiming, 9 home units composition of consortium became *ST Super day restructuring case of investors, which Jiangsu Association Xin led restructuring, will became holding shareholders.
In this draft reorganization, *ST ultra premium increase equity of 1.68 billion shares, and the free transfer of shares by all shareholders and investors qualified assignee. Among them, the investors transferred the shares shall be paid 1.46 billion yuan, *ST Suri, through disposal of assets and borrowed funds raised both inside and outside no less than 500 million Yuan, which amounts to no less than 1.96 billion yuan, all used to cover restructuring costs, pay off debt, affirming the rights and so on, as *ST Suri and subsequent management of liquidity.
After the restructuring, GCL is responsible for the production and operation of *ST Suri in Jiangsu Province, and provide part of the debt service funds; jiaxing 8 institutions such as long an Bo Yuan and Shanghai as financial investors, mainly *ST Suri debt settlement financial support provided, resume production and management.
Senior Securities analyst Chiang told reporters, according to *ST over day special description appears in the announcements, if the restructuring plan fails to get creditors ‘ meetings, investor group meeting vote and court approval of bankruptcy and liquidation of the company. This means that, if draft reorganization does not pass, the creditor will be difficult to get the debt service funds, therefore, through probability is quite high.
About Suri’s founder has been difficult to restructure
It is understood that the Jiangsu GCL will eventually become the reorganization led *ST Suri who first benefited from the Shanghai Municipal Government to actively pull strings, after all, the Government does not want to see a local company to collapse. In the view of the Government, took over the party it is best to have the strength of enterprises. As founder of Suri Ni Kailu is difficult about restructuring.
“Jiangsu GCL accept instructions, assume the lead reorganization of work, can make up for in PV production gap, now entering *ST Suri is also more cost-effective, as the recovery in the domestic photovoltaic industry, and return to the market next year. “These two companies more familiar to industry insiders Mr Jiang pointed out that dismal of the photovoltaic industry in recent years, Jiangsu Golden Concord in the PV field style than in previous years, but as the industry picks up, Concord in the PV industry is slowly recovering.
Statistics show that Jiangsu GCL was set up in October 2011, the platform of investments is the Concord Group, with registered capital of 500 million Yuan, the main business scope includes: electricity, mining, and other industrial, commercial, investment, energy storage, power battery sales. Living behind the Golden Concord Group was founded in 1991, has its headquarters in Hong Kong, is a focus on clean energy and conventional energy of specialized energy group, is China’s largest non-State-controlled electricity holding company and the world’s largest maker of photovoltaic materials.
Photovoltaic industry is heading for a giant control era
Noteworthy is that this isn’t the first time Concord Group restructuring listed companies. As early as in May this year, GCL group through GCL acquired sentai group listed in Hong Kong and inject a power plant assets then company name changed to “Concord new energy.” Since May, Concord new energy’s share price has risen more than 100%.
It was also learned, GCL group in the h-share market now has two financing vehicles, and in the a-share market has not yet “stronghold”. Pass this white *ST Suri, get a share after financing platforms, will help and industry more closely combined, GCL business in mainland China, after all. Meanwhile, financing flexibility will also be greatly increased.
However, Mr Jiang in the industry view, above absolutely perfect industrial chain layout of Concord amongst ourselves, “Concord had previously avoided involvement in downstream components battery, *ST Suri focus battery components until the restructuring is complete, GCL industry chain will be even better. ”
*ST Suri rationalisation plan behind the index rise in industry concentration degree of reality. “Every industry, in assets mode, the number can not be too much. As an asset of the photovoltaic industry, will inevitably become a few Giants control era. “Jiangsu PV industry in a market source told reporters, in fact, starting from shunfeng photovoltaic recombinant Suntech, a trend that has become more manifest.
This view, Hsiao, a researcher with the investment advisor in new energy industry letter to yours. He noted that mergers and reorganizations of the photovoltaic industry has been in SME will inevitably be eliminated, promotion of industry concentration are favorable for the industry as a whole. The future, GCL is bound to play a more important role in the merger and reorganization process.
Original title: GCL white *ST Suri in Jiangsu Province: Ni Kailu has difficulty about restructuring