Bloomberg News

Q-Cells May Get More Time to Repay $281 Million Bond

October 25, 2011

(Updates with analyst comment, shares from 5th paragraph.)

Oct. 25 (Bloomberg) -- Q-Cells SE, the German solar cell and module maker whose shares have tumbled 77 percent this year, may get more time to repay a 202 million euro ($281 million) corporate bond due at the end of February.

Bondholders meeting in Frankfurt today voted to accept lawyer Carlos Mack as their representative. Mack was authorized to defer the maturity of the bond from Feb. 28 “if necessary and under certain circumstances, for a relevant period up to the end of 2012 at the latest,” Q-Cells said in a statement.

“The same applies to claims arising from the guarantee for the convertible bonds assumed by Q-Cells,” the company said. “A vote on the need for or possible duration of a deferral was not held at this time.”

Q-Cells shares climbed for a second day, closing up 6 percent at 0.578 euros. About 82 percent of the outstanding capital was represented at the meeting, the company said.

Q-Cells and German peers Solarworld AG and Conergy AG have struggled to deal with weakening demand in Europe, where Germany, France and Italy lowered subsidies to cap booming installations. They’re also under pressure from Chinese manufacturers that have boosted production capacity just as cell and module prices slumped.

“Q-Cells is trying to win time as it attempts to organize financing to repay the bond and hopes for more revenues,” Erkan Aycicek, an analyst with Landesbank Baden-Wuerttemberg in Stuttgart, said by phone.

The company on Aug. 10 reported a quarterly net loss of 355 million euros and said it expects a full-year operating loss in the “three-digit million euro” range. Also in August, it hired Los Angeles-based investment bank Houlihan Lokey to look into mid-term financing.

--With assistance from John Glover in London. Editors: Stephen Cunningham, Amanda Jordan.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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