Confirmation Yingli parent company shareholders will be wiped out

Shareholders in the parent company of Chinese solar manufacturer Yingli today received confirmation of long-anticipated news the business will be liquidated.

A statement to the U.S. Securities and Exchange Commission (SEC) today – where the Yingli parent company is listed on the over-the-counter Pink market – stated the parent company is expected to be liquidated at the end of the month after a petition from its main Chinese operation, Yingli Energy (China) Co Ltd.

The statement said Yingli China had applied to the Grand Court of the Cayman Islands to liquidate Yingli Green Energy Holding Co Ltd as insolvent and unable to pay monies owed to Yingli China. The SEC filing said: “The Grand Court of Cayman Islands is expected to accept the petition to liquidate the company around the end of September.”

In July, the Baoding Municipal Intermediate People's Court in Hebei province, China, agreed to bundle the administration processes for Yingli China with that of fellow Yingli Green Energy subsidiary Baoding Tianwei Yingli New Energy Resources Co Ltd and of Yingli China sub-companies 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.

The administration would oversee a proposed restructure of those businesses aimed at keeping operations running, with creditors taking “controlling equity interests” in the debtor units plus new funds from unnamed third parties, according to a statement issued by Yingli at the time.

In terms of stock holders of the parent company, today's SEC filing said: “The restructuring of these six companies is expected to wipe out all equity interests in these companies, and therefore the company [Yingli Green Energy] expects to suffer a total loss of all of its direct and indirect investments in these companies. Given the company’s current assets and liabilities, the company does not expect there will be any residual assets for distribution to the company’s shareholders upon completion of the company’s liquidation. The company is expected to be dissolved upon completion of the liquidation process, which will be carried out by the insolvency administrator, and all outstanding shares of the company, including any ADSs [American depository shares – dollar denominated for the trading of foreign stock in the U.S.] representing the company’s ordinary shares, are expected to be cancelled for nil consideration upon completion of the company’s liquidation and dissolution process.”