A €201.7 million bond debt due at the end of February 2012 is looming large at Q-Cells as its struggles to restructure its business a second time in as many years. In a detailed financial statement, Q-Cells is calling on bond holders to meet 3-days before the debt is due to be repaid with a possible aim to extend the maturity time. A separate €250 million 5.75% convertible bond, due in 2014 is also expected to be considered at the meeting.
Q-Cells noted in the statement that failure to gain agreements with holders of the 2012 due bond could trigger claims from the 2014 bond holders. Similar consequences could result in relation to a 2015 Note and the other financial liabilities of Q-Cells.
The company said that the current market conditions and competition from Asia had been “exacerbated” by “regulatory changes in important sales markets in the first half of 2011, accompanied by a substantial drop in prices since the beginning of 2011.”
Q-Cells posted a €355 million loss in the second-quarter, sparking a new restructuring of the company.