Sunpower Group said on Tuesday that two major shareholders’ loan agreement with America 2030 and related share transfers are not in breach of any of the group’s loan provisions and don’t impact its ability to continue as a going concern.
“The group is not a party to the America 2030 loan agreement. The America 2030 loan agreement constitutes borrowings of the group’s substantial shareholders and do not, in any way, constitute borrowings of the group,” Sunpower said in a filing to SGX late on Tuesday in response to queries from SGX.
“The board is of the opinion that the America 2030 loan agreement does not have any bearing on the group’s borrowings and the group is therefore able to continue as a going concern,” Sunpower said on Tuesday.
Earlier this month, Sunpower had issued a statement that two substantial shareholders — Guo Hongxin, executive chairman of Sunpower, and Ma Ming, executive director — had placed 14 million Sunpower shares each, or around 1.89 percent of the company’s total issued shares, as collateral to a depository broker designated by the lender, America 2030 Capital. Guo and Ma’s loans, which were not disbursed, were for their personal use, Sunpower said earlier this month.
In that statement, Sunpower said the two shareholders told the company on 3 November the shares were no longer in the depository broker account.
But America 2030 Capital said that the borrowers had failed to comply with the terms of the loans and that it retained control of the collateral, in accordance with the executed contracts.
In the statement on Tuesday, Sunpower noted that of its existing borrowings or loans, only the convertible bonds make reference to Guo and Ma’s shareholdings.
Sunpower issued convertible bonds due 2022 with a principal amount of US$110 million to Glory Sky Vision (GSV), while Blue Starry Energy and GSV also agreed to subscribe for convertible bonds due 2022 of an aggregate principal amount of up to US$70 million, it said.
Under the convertible bond agreements, Guo and Ma had agreed not to dispose of more than 20 percent of their combined holdings in Sunpower’s shares, the filing said. The America 2030 loan deal only related to 1.89 percent of Sunpower’s total issued share capital, less than the percentage stipulated in the restriction, it said.
Guo has an interest in an aggregate 147.72 million Sunpower shares, or around 19.98 percent of the total, while Ma has an interest in 128.54 million shares, or 17.39 percent of the total issued shares, Sunpower has previously said.