Shanghai Chaori Solar Energy Science & Technology Co., a Chinese maker of solar cells, will be able to pay the 89.9 million yuan ($14.5 million) of interest due next month on its outstanding debt, the official Xinhua News Agency reported.
The company will make the payment using its own funds, Xinhua reported, citing a bondholders meeting held yesterday in Shanghai. Three calls by Bloomberg to the company’s investor relations department seeking comment went unanswered.
Chinese solar companies including Chaori Solar, LDK Solar Co. and GCL-Poly Energy Holdings Ltd. have reported profit declines this year after a global equipment supply glut depressed prices. Chaori Solar said in October that profit for the first nine months fell more than 97 percent from a year ago. No company has publicly defaulted on its bonds in China.
Chaori Solar has 1 billion yuan of outstanding five-year debt that mature in March 2017. The bonds last traded at 103.9 yuan to yield 7.8 percent, according to Chinabond prices.
The solar company’s long-term credit rating was cut to AA-from AA by Pengyuan Credit Rating Co. earlier this month.
Suntech Power Holdings Co., the world’s largest maker of solar panels by revenue, said this month it hired UBS AG to evaluate alternatives to address its U.S. dollar-denominated convertible notes due March 2013.