A unit of Chinese solar panels maker Yingli Green Energy (NYSE:YGE) on Thursday expressed concerns that it will be unable to make medium-term note (MTN) repayments due on May 12, 2016.
Baoding Tianwei Yingli New Energy Co Ltd has to pay back the CNY-1.4-billion (USD 215m/EUR 189m) 2011 MTNs principal along with CNY 86.1 million in accrued interest by Thursday. The subsidiary blames the possible default on consecutive losses, an online statement on the China Bond Information Network shows.
The risk warning comes not long after the troubled subsidiary failed to agree on an up-to-three-years maturity extension with its bondholders. In a press release in late April, the parent said that Tianwei Yingli was still discussing the potential extension of the repayment dates of certain notes and listed the possible introduction of strategic investors into Yingli and its units, the introduction of new creditors, or the disposal of long-lived assets, as alternative financing plans for repayment.
Tianwei Yingli has not yet paid in full its CNY-1-billion 2010 MTNs that were due on October 13, 2015.
Yingli Green saw its shares plunge significantly after it said it expects to report a net loss of between CNY 5.8 billion and CNY 5.9 billion for 2015, widening significantly from CNY 1.3 billion a year back. The firm may disclose “substantial doubt” as to its ability to continue as a going concern when it files its annual report for 2015, which is expected to happen on May 11.
(CNY 1.0 = USD 0.154/EUR 0.135)
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