As previously communicated on December 16, 2022, through press release, Advanced Soltech requests an extension of the terms for the SOLT2 bond. Complete information regarding the extension of SOLT2 and how to vote, is found in the attached documents.
During 2022 Advanced Soltech has worked intensively on refinancing the issued bonds that mature during 2023. The company believes that the best conditions for this are found locally in China, where both investors and banks have shown interest in financing Advanced Soltech's operations.
However, administrative processes associated with refinancing from China it has taken longer time than expected, which means that the repayment of the SOLT2 bond on its due dates, February 28, 2023, will not be met. The company will therefore ask the bondholders for an extension of the agreement.
Next step will be that the bondholders will be contacted and presented with the proposal from the company regarding the extension of the affected bond agreement. The proposal means that the agreement with the company is extended with approximately 4 months, from the initial maturity date, i.e. February 28 to July 9, 2023. The bondholders will be compensated for the extension with 2 percentage points higher yearly interest rate during the extended time. Interest will be paid in the same way as before. Given ongoing processes, it is the company's assessment that repayment of the SOLT2 bond will be carried out at latest July 9, 2023.
Advanced Soltech has a strong underlying business with good cash flow and has always been able to meet its obligations both in terms of repayment of bonds and ongoing interest payments. The company also has full support to implement the necessary measures to secure the company's financial position, from its main owners, Advanced Solar Power Hangzhou Inc., and Soltech Energy Sweden AB (publ).
Max Metelius, CEO of Advanced Soltech, comments:
"Advanced Soltech operates in a very strong market in China and has a very well-functioning and proven business model with good cash flows. This makes us an attractive borrower in China. Administrative processes delayed by, among other things, COVID restrictions mean that we have not been able to complete the refinancing on time, which is unfortunate. However, our assessment is that we will refinance the bonds with local Chinese bank loans, which also will be our future main source of funding”