The Chinese court charged with appointing an administrator to restructure solar manfacturer Yingli has decided to package the six Yingli companies concerned into one administration, according to a document filed with the U.S. Securities and Exchange Commission (SEC) today.
Yingli Energy (China) Co. Ltd; Baoding Tianwei Yingli New Energy Resources Co. Ltd; and Yingli China subsidiaries Hainan Yingli New Energy Resources Co. Ltd; Tianjin Yingli New Energy Resources Co. Ltd; Hengshui Yingli New Energy Resources Co. Ltd; and Lixian Yingli New Energy Resources Co. Ltd will be treated as one package by the administrator appointed by the Baoding Municipal Intermediate People’s Court in Hebei province.
Announcing the court had agreed to demands from Yingli creditors to appoint an administrator last month, Yingli said the core contents of its restructuring plan were “the conversion of a significant portion of the financial debts of Yingli’s major PRC subsidiaries into controlling equity interests in the subsidiaries, full and orderly repayment of parts of financial debts and other payables, and fund injection [from] third-party platforms,” hinting at the break-up of the business.
The SEC filing published today by the OTC Markets Group-listed company, stated: “Yingli Green Energy, the ultimate parent company of those six companies, cannot assure that any proposed debt restructuring plan will leave any value for its shareholders and will further update the market when there is significant new progress.”
In a statement issued to pv magazine, Yingli said the decision to conduct one administration of the six business units “will help Yingli to maintain its manufacturing capacity, brand value, utilize sales and purchasing channels and maximize the creditor’s right. At the same time, with release of the notice to recruit investors, there is a good chance that strategic investors will soon be introduced to further improve Yingli’s assets and cash position and enhance competitive advantages. Yingli will continue production and operations to meet customer orders and its product warranty obligations during restructuring period.”
This article was amended on 16/07/20 to include the statement from Yingli.
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