Milbank has successfully advised GCL New Energy Holding Limited (“GCL New Energy”) in the restructuring of US$500 million 7.1% senior notes due 2021 - the largest US dollar bond restructuring for an Asian renewable company to date. The restructuring took the form of a scheme of arrangement in Bermuda and was effective as of June 16, 2021.
HKSE-listed GCL New Energy is a leading solar power generation company in China specializing in centralized and distributed photovoltaic power plants. It is a majority-owned unit of GCL-Poly Energy Holdings Limited (“GCL-Poly”), one of the world’s largest suppliers of polysilicon and silicon electronic wafers.
In addition to securing sanctioned approval from a Bermuda court for the exchange on June 11, 2021, GCL New Energy also has amassed support from over 90% in principal amount of the outstanding notes. The restructuring is expected to substantially reduce the liquidity pressure on GCL New Energy while at the same time yield a beneficial outcome for bondholders.
The Milbank team was led by partner Liang (Alex) Tao (Hong Kong) and partner Jacqueline Chan (Singapore) and included associates York Wu, Olivia Lin and Hua Chan, as well as legal manager Joshua Zhu.
“We’re pleased to advise GCL New Energy in finding a path out of a difficult financial situation spurred by market headwinds and exacerbated by the global pandemic. With continued excitement for GCL-Poly and the renewable energy ambitions in China more generally, we anticipate a strong recovery for the company and look forward to continuing our support of the company in achieving sustainable long-term success,” said Mr. Tao.
“This transaction attests to Milbank’s unparalleled experience and capabilities assisting corporate clients on their most complex, cross-border financial restructuring transactions in Asia” added Ms. Chan, who led on the financial restructuring aspects.
