King Kong Solar (300093.SZ) signed a “Settlement Agreement” and implemented debt restructuring

Zhitong Finance App News, King Kong Solar (300093.SZ) announced that in May 2022, the company's subsidiary Suzhou King Kong Photovoltaic Technology Co., Ltd. (“Suzhou King Kong”) signed a “financial leasing contract” with Suzhou Financial Leasing Co., Ltd. (“Suzhou Golden Rent”) to carry out sales and leaseback business using the relevant equipment assets under the contract as the subject of the lease. The lessor is Suzhou Leasing, the lessee is Wujiang Jingang, and the leasing principal amount is 100 million yuan. The Company and Guangdong Ouhao Group Co., Ltd. (“Ou Hao Group”) signed a “Guarantee Contract” with the lessor to irrevocably guarantee all debts owed by the lessee to the lessor in the “Financial Lease Contract”. Suzhou Golden Rental filed a lawsuit with the People's Court of Wujiang District, Suzhou City, Jiangsu Province because Suzhou King Kong failed to pay rent to Suzhou Rent in accordance with the agreement.

According to the announcement, the company, Suzhou King Kong and Ou Hao Group plan to sign a “Settlement Agreement” and implement debt restructuring with Suzhou Gold Rental. After the debt restructuring was implemented, Suzhou King Kong was required to pay rent, lease principal and nominal product price in installments totaling RMB 33.5379 million to Suzhou Golden Rental. The company and Ou Hao Group continued to guarantee all debts after the restructuring. According to reports, this debt restructuring will actively facilitate the settlement or withdrawal of lawsuits against the company between Suzhou Financial Leasing and the company in the financial leasing contract dispute case, which will help reduce the company's legal risks and costs of legal litigation, and ease the pressure on the company's cash flow.