Xinyi Glass postpones Xinyi Solar listing on volatile market

Chinese glass producer Xinyi Glass Holdings Ltd said on Wednesday it has postponed the spin-off and share market listing of its solar glass production unit, due to volatile capital markets and the adverse impact of Europe's sovereign debt crisis on the solar energy industry.

Xinyi Solar submitted an application to the Hong Kong stock exchange to list on the main board in June.

The firm produces solar glass products, ultra-clear photovoltaic raw glass and ultra-clear photovoltaic processed glass.

Providers of Xinyi Glass Holdings' HK$1.1 billion ($141 million) 2010 loan recently invoked a market disruption clause on the deal because their funding costs have spiked, Thomson Reuters publication Basis Point reported on November 11.

Invoking a market disruption clause can increase pricing on a syndicated loan.

The company has not reached agreement with the lenders on how much extra it will pay for the loan, the report said.