Q-Cells Climbs After Winning $269 Million Bond Deferral: Frankfurt Mover

Q-Cells SE (QCE), once the world’s largest solar-cell maker, rose the most in almost three weeks in Frankfurt after the German company won more time to pay back about 200 million euros ($269 million) of bonds.

Q-Cells climbed 3.3 percent to 31.4 euro cents a share, its biggest one-day jump since Feb. 8. Creditors supported a company proposal to defer the maturity of the debt to April 30 from today, the Thalheim-based company said in a statement late yesterday.

“This agreement, backed by 80 percent of creditors, means that Q-Cells has taken the first major hurdle to restructure,” Katharina Cholewa, an analyst at WestLB, said by phone today. “While the shares may move, it shouldn’t be a lasting upside because of the huge dilution effect of the planned debt-to- equity swap.”

Germany’s solar manufacturers are under pressure from Chinese competitors that have boosted capacity even as international prices slumped, while facing a record cut to solar subsidies next month. Berlin-based module maker Solon SE (SOO1) and Solar Millennium AG (S2M), with headquarters in Erlangen, filed for insolvency in December.

Q-Cells had a record surge in Frankfurt trading on Feb. 1 after saying it reached an agreement “in principle” with the main holders of its 2012, 2014 and 2015 convertible bonds to complete a one-step debt restructuring. The bondholders, mainly institutional investors, will be able to swap their debt for 95 percent of equity, the company said.

Q-Cells, which forecast operating losses through 2013 on Jan. 24, has lost 39 percent of its market value this year.

To contact the reporters on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net;

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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