PVTIME - On June 9 EST,
photovoltaic enterprise Yingli Green Energy Holding Co., Ltd.
("Yingli") (OTC Pink: YGEHY) announced that Baoding Municipal
Intermediate People's Court has officially accepted the restructuring
application of its subsidiary in China, namely, Yingli Energy (China)
Co., Ltd. This means that the debt restructuring efforts over the last
five years have officially entered the judicial restructuring phase. An
administrator has been appointed to oversee the restructuring work, and
it is expected that in the following months, a restructuring
implementation plan will be formulated and binding through judicial
decision. According to legal professionals, the initiation of the
judicial process is essential to facilitate the effective implementation
of the restructuring plan.
"With the joint efforts of relevant departments and major creditor
banks, the direction and specific plans for the restructuring have been
basically determined," said Yiyu Wang,
CFO of Yingli Green Energy. Pre-restructuring stage tasks have been
completed, such as the assessment, auditing, and the formulation and
improvement of the restructuring plan. Creditors have reached a
consensus that the restructuring plan will follow the principles of
marketization and rule of law. The core contents of the restructuring
plan include 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 of third-party
platforms. Besides, there is a good chance that strategic investors will
soon be introduced to further improve assets and cash position and
enhance competitive advantages.
In order to promote a smooth restructuring, Yingli will actively
cooperate with the court and the administrator in accordance with the
law, fulfill its obligations, protect the legitimate rights and
interests of all parties and communicate with related parties.
Meanwhile, Yingli will also maintain regular production and operations
and continue to undertake the existing orders and warranties of the
subject of restructuring. The performance of labor contracts and
salaries and benefits of employee will not be affected, and the legal
rights and interests of suppliers and customers will be protected.
It is expected that after entering the restructuring period, Yingli
will focus on the implementation of the restructuring plan, as well as
the innovation of its business operations model, the optimization of
capacity distribution, the upgrading of facility production lines, and
the release of advanced technology reserves. The newly restructured
Yingli will return to healthy development as its debt ratio is expected
to drop to a medium or low level in the industry, and its cash flow will
be greatly improved. Additionally, technological leadership and product
competitiveness will be further enhanced to improve the stability and
competitiveness of the industrial supply chain.