Germany-based solar manufacturer Q-Cells SE plans to restructure its financial liabilities in two steps. As a first step, following negotiations with various creditor groups, the company initially aims to come to an agreement with the holders of the convertible bond due at the end of next month.
This agreement – in the form of public offers to the bondholders – will provide for a partial repayment of the outstanding bond volume in tranches over a period of time. As a second step, convertible bonds due in 2014 and 2015 will be restructured via a debt-to-equity swap.
A German court ruled this week that a 2009 bond law does not apply to the convertible bond issued by Q-Cells International Finance BV. Therefore, the appointment of a joint representative who could have deferred the bond by order of the creditors is not legally effective, the company explains. Q-Cells plans to appeal the decision.
In addition, Q-Cells has revalued the carrying amount of investments of its subsidiaries, as well as property, plant and equipment, resulting in a loss. The company expects further losses this year but plans to continue operating as an independent company after ‘the anticipated massive global sector consolidation’ predicted for the solar manufacturing market.
Finally, Q-Cells plans to continue to pursue its strategy of changing from a solar cell producer into an international supplier of photovoltaic solutions – a shift that was first announced in 2010.