Jan 11, 2019 (China Knowledge) - China Singyes Solar Technologies which was previously one of China’s top solar developer is now hoping to resolve bond payments worth RMB 967 million it had defaulted on last year.
The company which is listed on the Hong Kong stock exchange and specializes in operating and building solar curtain walls, defaulted on RMB 202 million of offshore and RMB 765 million of on shore bond repayments in October last year.
The company is currently in discussions with onshore lenders, suppliers and local governments to find a resolution to its recent woes, with its onshore creditors indicating that they are open to extending repayment deadlines.
The company faces difficulties in maintaining its current business operations due to its available working capital and has cut the operating hours at two of its factories to just 8 hours from its previous round-the-clock operations.
SIngyes’s difficulties started when the Chinese government made a move to reduce subsidies in the country’s solar industries to reduce overcapacity, resulting in demand falling by up to 40% in response.
Credit rating agency Fitch Ratings said on Tuesday that Chinese solar farm operators are now facing pressure from factors such as delayed subsidy payments and falling solar farm value.
Singyes now has RMB 2.43 billion worth of outstanding onshore loans and is looking to sell its photovoltaic power stations to repay these loans.
The company’s shares have been suspended from trading since October 15th last year.
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