China's GoodHao today submitted an offer for an equity stake in the fallen Malina
Chinese company GoodHao today submitted a bid to the creditors' committee of Energetický Hodling Malina (EHM) for an equity stake in the bankrupt solar firm. The offer envisages that Malina will pay the Chinese firm 80 percent of the price for the supply of goods, while GoodHao will exchange the remaining part for a stake in the company. According to the company, the aim is to complete the reorganisation of Malina and complete all its orders.
Last spring, Malina Energy Holding admitted problems with securing contracts. As a result, the company's management filed for insolvency, citing liabilities worth about CZK 1.4 billion. The company subsequently announced in June that it had approximately 1,500 contracts in the pipeline that it intended to complete. However, it has not yet started work on more than 2,200 other projects.
Malina has thus been in bankruptcy since last May. At the end of October, creditors allowed the company to reorganise, but the management has not yet presented a detailed reorganisation plan. However, according to earlier information, the plan should include the entry of a new investor.
Today, Malina's creditors' committee received an offer for an equity entry into the company from GoodHao, specifically through the PRK Partners law firm, which represents the Chinese company in the Czech Republic. "The submitted offer takes into account the current situation of EHM, including the fact that EHM will pay only 80 percent of the list price for the delivery of goods, which will have a positive benefit for its cash flow. The remaining 20 per cent of the list price will be deferred and, if the reorganisation plan is approved, GoodHao is prepared to capitalise this amount in connection with its entry into EHM," said Jakub Lichnovsky, partner at PRK Partners.
According to Lichnovsky, this is also the launch of the Chinese firm's activities in the domestic renewable energy market. The company is working on establishing a Czech representative office of GoodHao.
The majority owner of Malina Holding is Cyril Regner, the minority owner is now former chairman of the board Jan Urban. The company employs around 135 people. The company made a loss of over CZK 186 million the year before last.
GoodHao, which is headquartered in the city of Wuxi in the coastal province of Jiangsu in eastern China, is mainly engaged in infrastructure investment, investment and sale of alternative fuel vehicles, production and sale of photovoltaic equipment, investment and sale of wind power plants, energy storage end plants, investment and sale of semiconductors, biomedicine and other fields. The registered capital of the company is 100 million yuan (about 320 million crowns). The company has investment support and is funded by provincial and Chinese government funds.
Photo: Energetický Hodling Malina