Hanergy Lenders Wary of Stock Drop Said to Request Meeting

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Banks that lent $82 million to Hanergy Holding Group Ltd. asked for a meeting to air their concerns after the company’s Hong Kong-listed unit lost nearly 50 percent of its value last week, people familiar with the matter said.

Lenders that participated in the 3.5-year syndicated loan for Hanergy Capital, including Bank Sinopac and ICBC Asia Ltd., have yet to get a response, the people said, asking not to be identified because they aren’t authorized to speak publicly. Hanergy Capital is a unit of Hanergy Holding Group.

Hanergy Thin Film Group Ltd. lost $19 billion of market value in a May 20 share plunge before it was suspended from trading. Chairman Li Hejun bought 54.5 million shares on that day, according to disclosure filings Wednesday, stepping up his purchases of the company’s stock since May 18.

Two calls to Hanergy’s Beijing office went unanswered. There was no immediate reply to an e-mailed request for comment about the loan.

Hanergy Holding Group obtained the loan from 11 lenders in December, backed by a standby letter of credit from the Export-Import Bank of China.

Chairman Li bought 26.4 million additional Hanergy shares at an average price of HK$7.28 on May 18, according to two separate filings to the Hong Kong Exchange on May 22. He also increased his short position to 7.71 percent of Hanergy’s issued share capital, from 5.81 percent on the same day.

Li purchased 42 million Hanergy shares at an average price of HK$7.103 on May 20, and also bought 12.5 million shares at HK$7.226 on the same day, according to separate filings today.

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