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Moser Baer India (MBI), the nation s biggest solar manufacturer, plans to restructure $738 million of loans and bondsas it jostles to survive a supply glut that has claimed at least 10US, German and French panel makers. The company expects to reach an agreement with banks to restructure35 billion rupees ($646 million) of secured debt by August and maysell new five-year bonds to pay off dollar- convertible notesmaturing in June, Chief Financial Officer Yogesh Mathur said in aphone interview from New Delhi. Its 2013 zero-coupon bond istrading at 35 cents on the dollar. Solar panel prices have plunged 48 percent in the past year amidoverproduction led by Chinese manufacturers and dwindling demandin Europe, the largest market for the equipment. Moser Baer andIndian peers such as Indosolar are producing at 20 percent ofcapacity as sales sputter and industry margins collapse globally,Bloomberg New Energy Finance said in January. The time certainly is not the best for a new issuance, saidAtul Gharde, a Hong Kong-based credit analyst at SJS Markets Ltd. Chinese solar companies are struggling and the yields of thosebonds are at distressed levels. Even if Moser Baer were toattract an anchor investor, selling new bonds could be quitechallenging, he said. Moser Baer dropped 0.5 percent to 11.05 rupees at 10:28 am inMumbai, extending yesterday s plunge to a 13-year low. The yieldon its zero-coupon bond due in June rose 2.4 percent to a record,according to data compiled by Bloomberg. Failing to benefit The biggest panel suppliers including China s Suntech PowerHoldings and Tempe, Arizona-based First Solar say Indiais about to become one of the fastest-growing solar markets,countering waning demand in Europe, where governments arecurtailing clean-energy subsidies. The government seeks to turnIndia into a global hub with rules aimed at spawning 5 gigawatts ofdomestic solar manufacturing capacity by 2020. Moser Baer and local competitors failed to benefit from a 50-foldincrease in solar power capacity in India since December 2010.Instead, overseas suppliers reaped most of the equipment orders,said K Subramanya, former chief executive officer of Tata BP SolarIndia who resigned this month. Moser Baer, which makes solar panels and the silicon-based cellsused in them, has $89 million of convertible bonds maturing on June21, according to data compiled by Bloomberg. The New Delhi-based company is negotiating with bondholders toeither extend the tenure or issue fresh notes to pay them off,Mathur said. Its cash balance has fallen below $15 million, hesaid. Indian companies may default on 20 percent of $7 billion indollar-denominated convertible bond payments due in 2012, FitchRatings said in a report on February 21. Moser Baer and XLEnergy, a Secunderabad-based competitor, were among 16 companiesidentified in the report as likely to reorganize debt. Overall, this isn t good news for the Indian convertible bondmarket, Raj Kothari, a London-based bond trader at Sun GlobalInvestments, said of Moser Baer s plans. The e-commerce company in China offers quality products such as Nail Polish Stickers , 2d Nail Sticker, and more. For more , please visit Glitter Nail Sticker today!
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