United PV mulls ways to assist Yingli in debt repayment - report
Solar system. Author: sasha sakharov. License: Creative Commons.
United Photovoltaics Group Ltd (HKG:0686) is considering different strategies to help troubled sector player Yingli Green Energy Holding Co Ltd (NYSE:YGE) avoid a debt repayment crisis, Bloomberg said Thursday.
To that end, Hong Kong-based United PV, part of investor and plant operator China Merchants New Energy Group (CMNE), may team up with some of its local peers or other state-controlled firms from different business segments in order to back Yingli, CEO Alan Li was quoted as saying by the news agency today.
Just recently, Chinese solar module supplier Yingli warned that it might not be able to meet payment obligations under its debt instruments and said there is “substantial doubt” as to its ability to continue as a going concern late last week.
In the meantime, Yingli is also taking certain measures to deal with the situation, one of which is the recent repayment of CNY 1.2 billion (USD 194m/EUR 174m) worth of mid-term notes, which matured on May 3. It is also looking for partners that can buy more shares and, at the same time, for a strategic investor, chief financial officer Wang Yiyu told Bloomberg previously.
In April last year, United PV agreed to purchase stakes in 300 MW of photovoltaic (PV) capacity under development by Yingli.