Yingli Green Energy has today issued a statement refuting recent media reports that suggested the company has doubts over its ability to continue as a going concern.
In an issuance of an SEC filing over the weekend, Yingli stated that it may be unable to continue trading due to "substantial indebtedness" amounting to more than $1.6 billion in short-term borrowings.
However, the company today stressed that despite disclosing in the filing that it has doubts over its ability to continue as a going concern, a series of positive steps have already been taken to assuage debt and doubt over its finances.
The statement read: "In accordance with the relevant rules and regulations of the SEC and the New York Stock Exchange, Yingli Green Energy recently filed the 2014 Annual Report with the SEC, in which the Company disclosed its operating and financial results for 2014, including the Companys historical financial performance, as well as the Companys overall losses, debt-to-equity ratios and strategic investments."
Yingli adds that, in line with advice and analysis from its independent auditors, the company disclosed in its report that there is "substantial doubt as to the Companys ability to continue as a going concern".
The company then adds: "However, this statement has been taken and interpreted out of context in some media coverages. The Company has been transparent not only about the risks and challenges it faces, but also about [its] alternative plans to mitigate future risks and challenges."
Yingli chairman and CEO Liansheng Miao said: "While we still have another series of medium term notes in the principal amount of RMB 1 billion due on October 13, 2015, we believe that we will meet our repayment obligations based on the substantial progress we have achieved to date to secure funds to repay these notes on schedule."
Yingli has finally scheduled its highly anticipated conference call for today, May 20, to discuss its financials and lay to rest fears over its future. The conference call will be held at 8:15 AM U.S. Eastern Daylight Time, which is 8:15pm GMT.
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