Despite recently presiding as the world's largest PV module maker, Yingli Green Energy has been in financial trouble for the last few years. Each quarter the company continues to lose money, and in May warned investors of substantial doubt about our ability to continue as a going concern due to the company's heavy debt burden.
This in turn led to a collapse of Yingli's stock price, feeding a vicious cycle of falling market capitalization which can make it harder to obtain funding to feed its debt. It is hardly surprising that in late September Yingli proposed a restructuring of payment on US$157 in medium-term notes.
However, today Yingli brought some good news that shows that it may still be able to navigate its financial problems, at least on the short term. The company reports that it was able to pay off $110 million, representing 70% of the principle and interest, on the day the notes were due. This was achieved by liquidating idle land and demolishing facilities in its abortive polysilicon division.
Yingli says that it is working closely with note holders, and expects to repay the remaining portion within one year.
The company's stock price has shown a very modest rally in the past two weeks. However, it still remains well below $1 per share, and has been below this value for three months.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
Popular content
Share
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.