September 25, 2017 / 4:57 PM / a year ago

BRIEF-Renesola enters agreement to dispose manufacturing and LED distribution businesses

Sept 25 (Reuters) - Renesola Ltd :

* Renesola enters into definitive agreement for the disposition of manufacturing and led distribution businesses and related liabilities

* Company has entered into a share purchase and subscription agreement with Xianshou Li, chairman and chief executive officer of company​

* Pursuant to terms of SPA, Renesola Singapore (SGP) will cancel about $217.3 million of intercompany payables owed by company to SGP

* Following restructuring, at closing of transactions contemplated by SPA ,co will transfer 100% of share capital of SGP to buyer​

* Pursuant to terms of share purchase and subscription agreement​ company will effect an internal restructuring

* Pursuant to terms of SPA, co will issue 180 million shares of no par value per share of company to Renesola Singapore Pte​

* As a result of SGP share transfer co expects ‍bank borrowings in excess of RMB 3 billion to not be consolidated on company's balance sheet​

* Co has significant amount of debt & periodic interest payment obligations, which together pose substantial going-concern risks to co​

* Co was searching for strategic alternative that could alleviate going-concern risks and avoid significant impairment to shareholder value​

* Post restructuring, SGP to hold substantially all of co's assets & liabilities related to manufacturing business & led distribution business​

* Believe transaction will help alleviate co's going-concern risks and de-listing risks, enhance co's capital raising capabilities​

* ‍under Agreement, for 10 years post closing, SGP also agreed to offer co a preferential right to acquire any products of SGP​ Source text for Eikon: Further company coverage:

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