Chief executive Nedim Cen insists Q-Cells is not veering towards bankruptcy. Photograph: Q-Cells German PV manufacturer Q-Cells has forged a deal with its investors to restructure its three outstanding convertible bonds in a single transaction.
Q-Cells revealed it had reached an agreement ?in principle? with the main holders of 2012, 2014 and 2015 convertible bonds to complete a financing restructuring in one step. Last month it said it would need to pursue a two-step transaction.
Bondholders, which are mainly institutional investors, will be able to swap their debt for 95% of the equity in Q-Cells. Holders of the 2012 note will also get a cash payment of ?20m ($26m).
?If enough Q-Cells bondholders agree, the deal will be very positive as it means no risk of bankruptcy during 2012 and no liquidity issues for the next two years,? according to Katharina Cholewa, an analyst at WestLB, quoted by Bloomberg.
?However, the upside for the shares will depend on how much cash the company has left after this restructuring and when it returns to profitability.?
Q-Cells? shares surged in Frankfurt, climbing as much as 38% to ?0.46, after the restructuring was announced. The company traded as high as ?80.95 euros in December 2007.
Ben BackwellPublished: Wednesday, February 1 2012 | Last updated: Thursday, February 2 2012
Source: http://www.rechargenews.com/business_area/finance/article301116.ece?WT.mc_id=rechargenews_rss
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