The developer is aiming to resume trading in its stock tomorrow ahead of a shareholder vote this month which could remove more than half of the $220 million it owes creditors in overdue payments.
With pv magazine having this morning reported on the festive sale of a 50 MW solar farm by Chinese developer Shunfeng International, the heavily indebted PV project company this afternoon revealed plans to sell off another 132 MW of generation capacity.
Shunfeng said trading in its stock has been paused since Friday morning because of the latest planned asset sell-off and is set to resume tomorrow morning in Hong Kong.
The latest mooted deal would see Shunfeng project companies sell their stakes in four solar farms to state-owned entity State Power Investment Group Xinjiang Energy & Chemical Co Ltd, in a deal which would raise RMB890 million (US$140 million), if approved by shareholders and the authorities.
E-mobility: A greener road to transportation
Urban transportation is key to modern civilization. But it has come at a cost, contributing to a dangerous carbon footprint, high levels of smog, a growing inequality gap, and the destruction of some of our most fragile environments. Thus, in the first quarter of this year, pv magazine’s UP Initiative will focus on the rise of e-mobility and how it can complement the renewable energy transition. Read our coverage here.
With details of the required shareholder vote promised by Shunfeng by January 28, the developer said one of the target solar farms would need to be freed from a court-imposed freeze on the developer’s 95% holding. That was granted by the Zhejiang Provincial High People’s Court until the Shunfeng business concerned hands over an unspecified amount owed to state-owned engineering, procurement and construction services provider Hunan Province Industrial Equipment Installation Co Ltd.
In relation to another of the target projects, Shunfeng will first have to complete an agreement signed in December 2019 which will see its Shanghai Shunneng unit pay RMB10,000 (US$1,570) to acquire the 10% of the solar farm held by a third party.
Popular content
The developer said RMB810 million (US$127 million) of the anticipated RMB890 million to be generated by the sales would be spent on a short-term debt pile which has reduced from that reported by the company on Tuesday, and by pv magazine this morning.
Investor Sino Alliance, the only backer specified by Shunfeng as a recipient of the latest project sell-off, is now listed as having been owed HK$661 million (US$84.8 million) since December 2020, down from the previous HK$1.15 billion (US$147 million), some of which had dated back to the end of 2019. The RMB62.8 million (US$9.87 million) previously listed as owed to Chongqing International Trust Co Ltd – and being part paid by a forced project sale – had this afternoon been removed from the list of outstanding commitments.
Shunfeng today said it still owes a combined HK$1 billion (US$128 million) plus RMB585 million (US$92 million) in overdue payments dating back as far as November 2019, and will have to find HK$65.6 million (US$8.41 million) by the end of March for the Hong Kong branch of China Minsheng Banking Corp Ltd.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: [email protected].
Source: pv magazine
