Chinese court gives green light to Yingli's restructuring plan
Yingli Green solar park. Author: greenXmoney. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.
A court in Hebei Province, China, has cleared the restructuring plan of Yingli Energy (China) Co Ltd and another five manufacturing entities, it was announced on Friday.
The debt-laden Chinese solar photovoltaics (PV) maker said in a statement that following the approval by the Baoding Municipal Intermediate People's Court and the termination of the judicial proceedings, the only other challenge left is to execute the approved Restructure Plan. The draft of that plan was supported by over 90% of the votes cast by creditors.
“We have formulated detailed and concrete measures in terms of operation, adjustment of investors' rights and interests, adjustment and settlement of claims, and employee resettlement to ensure the feasibility of the draft plan and to maximumly protect the legitimate rights and interests of various types of creditors, which have been highly recognized by the parties," the administrator says in a press release.
The plan envisages converting a substantial portion of the financial debts of the six restructuring entities into equity interests in said firms, while other portions will be fully paid. The new Yingli will be owned by the creditors and the Baoding municipal government.
The new company will keep the factories, supply chain, technology, brand, sales channels and other assets of the original manufacturing entities. Moreover, it will build 5 GW of cell and 2 GW of module production capacity in Baoding, while also constructing 3 GW of module capacity in Tianjin to benefit from the existing port there. In addition, the firm will seek to further grow production capacity through joint ventures and other forms. The current management team will remain in place to run the company, the announcement reads.