Hongyuan Green Energy: Subsidiary Participates in Wuxi Suntech Bankruptcy Reorganization

People’s Financial News, March 25 — On March 25, Hongyuan Green Energy (603185) announced that on March 24, its controlling subsidiary Hongyuan Photovoltaic (Wuxi) Co., Ltd. (referred to as “Hongyuan Photovoltaic”) signed a “Restructuring Investment Agreement” with Wuxi Suntech Solar Power Co., Ltd. (“Wuxi Suntech”) and its administrator. Hongyuan Photovoltaic and Wuxi Suntech will jointly establish a new company, Xin Shunde (with Wuxi Suntech’s contribution forming the equity used to settle debts with ordinary creditors by equity swap). The registered capital of Xin Shunde will be 1 billion yuan. Hongyuan Photovoltaic will contribute 630 million yuan to hold approximately 63% of Xin Shunde’s equity and will lead an investment consortium to introduce other investors. After Xin Shunde is established, Hongyuan Photovoltaic will pay 142 million yuan in restructuring investment funds to Wuxi Suntech through Xin Shunde once the court approves the restructuring plan, for the purpose of acquiring assets necessary for Xin Shunde’s operations. The restructuring investment funds will be used to pay bankruptcy costs, common benefit debts, employee claims, relevant taxes, debt repayment, and related expenses to improve the recovery rate for ordinary creditors.