Q-Cells SE, 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 and Solar Millennium AG, 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.