China Cinda Asset Management Co., a Chinese state-owned asset-management group, is considering joining Yingli Green Energys debt restructuring after conducting due diligence on a possible participation, according to Bloomberg.
Citing unnamed sources familiar with the matter, Bloomberg reported that China Cinda saw potential in Yinglis solar business and could assist in selling off non-performing assets.
Once the worlds biggest PV module manufacturer, Yingli has not posted a profit in five years and at the end of the third quarter of 2015 had amassed a total debt of some $1.9 billion. The situation forced Yingli to lower its shipment estimate for 2015.
Yingli appears to have strong government backing for its planned restructuring measures. Last week the China Banking Regulatory Commission and the National Energy Administration signaled their support for the move, noting the company’s importance to the Chinese PV industry and the role of its core technology.