GCL-Poly Approves Plan for 30% of Struggling Chaori SolarEhren Goossens
GCL-Poly Energy Holdings Ltd., the world’s biggest maker of silicon used in solar devices, approved a plan for its parent and eight other investors to bail out struggling panels maker Shanghai Chaori Solar Energy Science & Technology Co.
Golden Concord Holdings Ltd., the parent of GCL-Poly, and the investors will buy a combined 66 percent stake in Chaori Solar, or 1.68 billion shares, for 1.46 billion yuan ($240 million) under a restructuring proposal, GCL-Poly said today in a statement after its board approved the plan.
The holding company’s Jiangsu Golden Concord arm will own 30 percent or more of Chaori Solar and will assume management. It has pledged to make Chaori Solar profitable this year and to relist it in 2015.
A plan to restructure Chaori Solar, the first company to default on China’s onshore bond market, was first announced on Oct. 7 and approved by Shanghai Municipal First Intermediate People’s Court on Oct. 28.
Jiangsu Golden Concord is owned by a discretionary trust whose beneficiaries include Hong Kong-based GCL-Poly’s Chairman and Chief Executive Officer Zhu Gongshan and his son, Executive Director Zhu Yufeng.
GCL-Poly also announced that it’s considering selling its solar panel wafer manufacturing business to a third party that “may or may not sell” the unit to Zhu Gongshan or his associates. The company expects agreements relating to the sale of the business to be signed by the end of the year.
GCL-Poly and GCL-New Energy have sold solar wafers, cells and modules to Chaori since July 29, GCL-Poly said.