Dec 9, 2014 - A Chinese court has declared polysilicon products maker Sichuan Xinguang Silicon Science and Technology Co Ltd bankrupt, one of its parents said today.
The move was announced by energy group Sichuan Chantou Energy Co Ltd (SHA:600674), which holds a 33.14% stake in Sichuan Xinguang Silicon. A further 30.38% in the troubled company are in the hands of power transmission firm Baoding Tianwei Baobian Electric Co Ltd (SHA:600550).
Saturday, Sichuan Chantou announced it had received a notice from the Leshan Municipal Intermediate People's Court that its unit is now officially bankrupt, after it had filed a bankruptcy application on August 25. The court explained that its decision is based on the fact that the financial condition of Sichuan Xinguang Silicon cannot improve and it should proceed with its liquidation.
Sichuan Xinguang Silicon had ambitious polysilicon manufacturing plans, but its business was hit by the crisis in the solar industry in 2012 and 2013. The list of company customers includes top solar module supplier Yingli Green Energy Holding Co Ltd (NYSE:YGE).
Sichuan Chantou noted that this will not have a significant impact on its energy production and other business activities.