Suri reorganization the reorganization relief PV industry also needs work harder

Polaris solar PV net news: the industry breathed a sigh of relief. Although differences remain on the previous day, but the afternoon of October 23, *ST Suri (hereinafter “Suri”) claim people voted to overhaul, Super Japanese bankruptcy exit fate is avoided. Following the shunfeng photovoltaic offer Suntech, merger and reorganization of PV industry in China for significant progress. Meanwhile, reporters learned that according to the State Council on promoting the healthy development of the photovoltaic industry advises spirit, led by the Ministry of industry and information technology of the photovoltaic industry is speeding up the development and implementation of the merger and reorganization of guidance, to promote PV next merger and reorganization of enterprises quickly and efficiently carried out.

Restructuring programmes taking into account the interests of all parties

*ST Suri’s liquidity ratio increasing from 3.95% to 20%, has increased more than 4 times times, it should be said the best interests of all parties into account.

The night of October 7, the domestic corporate bond market’s first event of default debtors Suri has revealed a series of announcements, including a super Japanese investors as well as people awaited the draft plan. PV enterprises of Concord Group, Jiangsu Golden Concord energy limited (hereinafter “Jiangsu GCL”) such as 9 units of the Commonwealth will act as a reforming of the investors, including GCL serves as the lead man in Jiangsu Province, and after the completion of investments into Suri’s controlling shareholder.

Suri in satisfaction of the debt ratio, restructuring programme, part of common claims 200,000 yuan (200,000 dollars) full payment, part payment in accordance with 20% of the more than 200,000 yuan. By contrast, according to the solvency analysis report, bankruptcy, property can change according to the evaluation of value in its own context, ordinary debt repayment rate is only about 3.95%.

However, some large creditors are not satisfied with this proportion. Creditors Tess o photovoltaic companies, one of the company’s stakeholders made it clear that “we support hyper-recombination, but does not accept a reorganization plan to pay scale. ”

Golden Concord (Group) Holdings Limited, Vice President and General Manager for financial management Cui Nairong said, this round of ultradian restructuring programme is the best interests of all parties into account, GCL Group result of careful deliberation and a number of investors, but also to improve the desperate Super day, the best way to avoid delisting. He also disclosed that the company for the largest ordinary creditor’s liquidity ratio has reached about 20%, the Suri’s overall investment also has no less than 3 billion yuan. If Suri restructuring programmes cannot be passed in a vote, then the company will be delisting as a direct outcome, settlement funds are available to each creditor will come to naught.

After weighing, creditors also voted for this restructuring programme. “Since the bankruptcy was caused by financial hardship could not pay its debts, and then, of course, any reorganization plan is impossible to please everybody. Partially full repayment of 200,000 yuan, or is the protection of small investors have done well. “Eagle investment management, investment director Zhang Wei, told reporters that” after *ST into a liquidity ratio of only zero adjustment from bankruptcy to restructure 3%, long endurance Phoenix from 0.8% to 11.6%, Suntech Power from 14.8% to 30%. 3.95% to 20% of *ST Suri, has increased more than 4 times times, it should be said the best interests of all parties into account, also paid a reorganization with the ultimate price you can afford. ”

Reforming influence on industry?

GCL white Suri, access to capacity, get through the entire value chain at the same time, also makes some people play waves in the industry.

After overhaul is passed, Suri will steadily entered reorganization proceedings. GCL as PV industry chain and wafer Giants to the white Super future, access to capacity, get through the entire value chain at the same time, also makes some people play waves in the industry.

Insiders said in an interview with the China electronics news, in order to avoid competition and their customers, Concord had previously claimed would not enter the PV module market, then the White King of Japan’s local governments, “pull” by? Buy a shell what Suri?

Another person in the GCL in the components market for over competitive concerns. “Although GCL said ultradian components to make your plant, however-day capacity if digestion does not end? Domestic wafer market basic GCL supplies, buy the GCL silicon components and GCL compete with the components they do? ”

For a “suspect” a “concern”, Solarbuzz Lian Rui, senior analyst, told reporters: “on the one hand, GCL as a large public company, was forced by the Government to buy Suri is impossible, certainly has its own strategic plan. Concord Group in Hong Kong with the GCL-poly and Concord two new energy listed companies, but it has no a-share listed companies, this time purchasing excess, though not this advantage business into the Super silicon, but there must be used in the future. The other hand, reforming just fall into place, they think they’re too far out, even one step at a time, after all, take your time. And, I think, for its downstream customers, even if both supply and healthy competitive relationship is also very normal. ”

“Without tension. “Staff members of the Secretariat of China PV industry association also told reporters of the China electronics news,” the perfect industrial chain, upstream and downstream integration, guarantee diversified product sales, business development and improving operating margins, and many other benefits. Is not only the industry, but precedent is very much in the photovoltaic industry. ”

He said that United States MEMC polysilicon enterprises is a good example. In 2009 with a $ 200 million acquisition of Sunedison North America’s largest solar energy service provider, entered the field of photovoltaics. In 2010, to $ 76 million acquisition of United States wafer maker Solaicx, access to silicon production capacity. At this point, MEMC completed the polysilicon, Silicon PV power plant construction and operation of PV industry chain structure. Besides, United States PV component package material producer pottery’s chemical acquisition has United States CIGS battery manufacturer NuvoSun; China of Sichuan pass Granville group 870 million Yuan merger has arisen now in Hefei of battery tablets factory, through polysilicon to battery pieces links, and its also intends to integration Sichuan new light silicon industry, more crystal silicon enterprise and tianwei new energy, battery pieces Enterprise; Oriental day liters also to 550 million Yuan acquisition Jiangsu Republika Granville grams materials limited 100% equity, Enter PV PV modules supporting materials EVA film business.

He also said that even government-led mergers, it is normal. Qinghai province, for example, through policy support and guidance, push around the upper reaches of the Yellow River in the province, such as utilities, Asia silicon for merger and reorganization of enterprises, and encourage enterprises to hold together for warmth, enhance the ability to withstand market risks.

“Indeed, over hundreds of megawatts of capacity are not too small, but compared with the GCL 13 GW wafer business, up a fraction of same. “Zhang told reporters,” the listed Super day together at Hong Kong with GCL-poly and Concord new energy listed companies, GCL photovoltaic industry will have 3 different platforms. For the PV industry of Concord for new energy and differentiated competitive advantage achieved without efficient components, and the use of this platform will be able to take control of component production. ”

“Reorganization is also intended to develop photovoltaic industries, rather than to capital operation. “GCL Lv Jinbiao, Deputy Chief, told reporters in remarks explaining the above question,” has the professional capacity of enterprises to which this is all stakeholders for rebirth of Suri selected bride. GCL do their best to take care of the interests of all parties and feel, reflects the responsibility of industry leaders. Of course, we have also benefited, that is in the process of restructuring on cooperative win-win empathy. We cannot afford to fail this new platform, we must work hard on the business aspects of technology, management and talent to do a career. ”

Merger and reorganization of all the difficulties

Led by the Ministry of industry and information technology, ministries involved in the merger and reorganization of the photovoltaic industry is speeding up implementation of the guidance.

Suri rationalisation plan by doing an excellent model for traders, but the merger and reorganization of PV industry in China remains very difficult. China PV industry association told Xinhua, so far, there are four problems PV industry in advance of mergers.

He said, first is a property of the industry. Production problems on the one hand, because polysilicon production project, simple mergers do not have economies of scale, polysilicon production equipment and once removed, less reusable, this also leads to mergers and reorganizations more difficult for this link. The other is the production of equipment problems, with advances in technology, production equipment prices continue to decrease while performance has increased substantially, it also makes some more in expansion is the acquisition of new equipment instead merger of existing enterprises, which led to mergers and acquisitions more difficult.

Followed by technology similar valuation issues. Is just one of a PV system components for photovoltaic products, which belongs to the industrial competitiveness is mainly reflected in the price/performance. In the case of photovoltaic technologies in China, China’s PV enterprises with strong heterogeneity. In the case of primary production are of a larger scale, the enterprise does not intend to continue in the market purely to increase capacity, even though there was expansion will also tend to buy new equipment for capacity expansion.

Is Government intervention again. Due to the photovoltaic industry’s contribution to GDP is higher, would also create more jobs, the local government is not willing to fail or be annexed. In particular, some local Governments had developed, for example through local financial institutions to support and, if these companies fail, will lead to a series of questions. Therefore, the efforts of the local governments can only help them support.

Finally, local “resources for projects” plan. Photovoltaic power plant approval authority has been delegated to local, local governments can be “flagging” issuance of developments to support local businesses in disguise. If by “flagging” tilt toward the local business; the resources-for projects aimed at “flagging” for enterprises in the local facilities; for photovoltaic projects at other local resources, which are not conducive to the advancement of the merger and reorganization.

Xinhua learned from the Ministry of industry and information technology to promote PV next merger and reorganization of enterprises working quickly and efficiently carried out, led by the Ministry of industry and information technology, ministries involved in the merger and reorganization of the photovoltaic industry is speeding up implementation of the guidance. “Trust the PV industry mergers and acquisitions guidance issued, can bring great impetus to industry mergers. “Zhang said.

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The evening of March 4, 2014, *ST Suri said in a statement that “Super debt” interest on this issue will not be on the original coupon date March 7, 2014, paid on time and in full, only to pay a total of 4 million Yuan. At this point, “Super debt” officially defaulted and became the first defaulted bonds.

“Super debt” became the first case of defaulting bonds, it also proclaimed “Chinese-style” rigid payment most core areas of public debt “null default” was officially broke. Earlier, the “Super debt” creditors have instituted proceedings to the Shenzhen Municipal Intermediate People’s Court, sued Shenzhen and CITIC Securities, but had been rejected.

Ouyang zehua, film director of listed company supervision of the SFC, said the “Super debt” defaults are history’s first corporate bond market debt default interest payments, regulators will focus on whether the resulting risk of local or systemic.

He said Suri company listed in 2010, is mainly engaged in solar photovoltaics. Since the second half of last year, market liquidity is tightening, and some industry went into decline in the channel. During the process of decline, some of the company’s cash flow will be affected. “Super debt” is a typical marketing events of default.

He said that supervision departments will continue to do the phases of information disclosure, urging the issuer and underwriting agencies corresponding duties and obligations in the performance of bond issuance. Meanwhile, according to the perfect investor suitability arrangement on a case of corporate bonds, according to bond-market developments, features, combined with investor protection, improve judicial relief system of the bond holders ‘ interests.

The industry believes that “Super debt” events of default in the short run effects of the financing needs of the lower-level financing body, but in the long run, reduction of the credit risk pricing and implicit rigid payment break down, will strongly promote the marketization of interest rate in China under the background of capital markets continued to grow, for the future development of the real economy to create a multi-level financial market environment.

Original title: Suri reorganization the reorganization relief PV industry also needs work harder

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