GCL New Energy’s US$500 Million Senior Notes Restructuring

Milbank LLP, working alongside Conyers, advised GCL New Energy Holding Limited on the deal.

GCL New Energy Holding Limited (“GCL New Energy”) announced 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, Picture) and partner Jacqueline Chan (Singapore) and included associates York Wu, Olivia Lin and Hua Chan, as well as legal manager Joshua Zhu.

The Conyers team consisted of Consultant David Lamb, Partner Angie Chu, Associate Felicity Lee and Michael Yu (Hong Kong), and Partner Christian Luthi and Associate Rhys Williams (Bermuda).

Involved fees earner: Angie Chu – Conyers Dill & Pearman; David Lamb – Conyers Dill & Pearman; Felicity Lee – Conyers Dill & Pearman; Christian Luthi – Conyers Dill & Pearman; Rhys Williams – Conyers Dill & Pearman; Michael Yu – Conyers Dill & Pearman; Jacqueline Chan – Milbank LLP; Hua Chan – Milbank LLP; Olivia Lin – Milbank LLP; Liang Tao – Milbank LLP; York Wu – Milbank LLP;

Law Firms: Conyers Dill & Pearman; Milbank LLP;

Clients: GCL New Energy, Inc.;

Author: Sonia Carcano