By Sarah White
LONDON, Nov 10 (Reuters) - Debt-laden German solar company Conergy is bracing for a new round of crunch talks with creditors if a report into its business scuppers an earlier refinancing deal, people close to the matter said.
The group -- once Germany's biggest solar firm before being hit by debt problems -- cleared a major hurdle in its restructuring in July when lenders agreed to extend 450 million euros ($636 million) of loans until the end of 2011.
But under the terms of that deal, a review into the business by auditors PricewaterhouseCoopers could bring forward maturities to Dec. 21 if the PricewaterhouseCoopers' review deems that Conergy will struggle to refinance its debt again next year.
The full report is expected by Dec. 1, one of the sources said. Another said it could emerge before then, even next week.
But while banks do not want to trigger fresh debt negotiations, a minority of creditors are still pushing for a debt-for-equity swap, sources said.
Distressed debt fund York Capital has also bought Conergy's loans, and was instrumental in introducing the caveats now at stake in the refinancing agreement, one of the sources said.
Conergy and York Capital declined to comment.
In addition to the loan extension, banks agreed in July to postpone payments of three instalments on a 150 million euro term loan, also to the end of 2011.
In August, Conergy raised its 2010 outlook after higher-than-expected second quarter profits.
The firm had failed to make a profit for nearly three years before overcapacity problems and a slump in prices hit the industry, forcing it into restructuring mode.
(Additional reporting by Alexander Huebner in Frankfurt; Editing by Jane Merriman) Keywords: CONERGY/REFINANCING (sarah.white1@thomsonreuters.com; +44 20 7542 3345; Reuters Messaging: sarah.white.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LONDON, Nov 10 (Reuters) - Debt-laden German solar company Conergy is bracing for a new round of crunch talks with creditors if a report into its business scuppers an earlier refinancing deal, people close to the matter said.
The group -- once Germany's biggest solar firm before being hit by debt problems -- cleared a major hurdle in its restructuring in July when lenders agreed to extend 450 million euros ($636 million) of loans until the end of 2011.
But under the terms of that deal, a review into the business by auditors PricewaterhouseCoopers could bring forward maturities to Dec. 21 if the PricewaterhouseCoopers' review deems that Conergy will struggle to refinance its debt again next year.
The full report is expected by Dec. 1, one of the sources said. Another said it could emerge before then, even next week.
But while banks do not want to trigger fresh debt negotiations, a minority of creditors are still pushing for a debt-for-equity swap, sources said.
Distressed debt fund York Capital has also bought Conergy's loans, and was instrumental in introducing the caveats now at stake in the refinancing agreement, one of the sources said.
Conergy and York Capital declined to comment.
In addition to the loan extension, banks agreed in July to postpone payments of three instalments on a 150 million euro term loan, also to the end of 2011.
In August, Conergy raised its 2010 outlook after higher-than-expected second quarter profits.
The firm had failed to make a profit for nearly three years before overcapacity problems and a slump in prices hit the industry, forcing it into restructuring mode.
(Additional reporting by Alexander Huebner in Frankfurt; Editing by Jane Merriman) Keywords: CONERGY/REFINANCING (sarah.white1@thomsonreuters.com; +44 20 7542 3345; Reuters Messaging: sarah.white.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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