Yingli restructure strategy formally authorized by Chinese court

• Solar supplier Yingli Energy has actually achieved what it called a "important milestone" after its restructuring plan was officially approved by a Chinese court.

Late last week the Baoding Municipal Intermediate People's Court in Hebei Province, China, rubber stamped a restructuring plan sent by Yingli Energy and 5 of its manufacturing subsidiaries.

In doing so, the court squashed judicial process released as a result of the company's personal bankruptcy process, permitting it to proceed with a broad plan made to re-establish the business within China's solar manufacturing industry.

In a statement, Yingli said the strategy had currently been approved by a bulk of creditors, a result which indicated "excellent ... assistance" for Yingli's restructure.

The strategy itself coverts a considerable part of the firm's financial obligations right into equity interests in entities to be created as part of the restructure. Other parts of financial debts are to be paid in full, while funds are to also be dispersed to third party systems.

It is underpinned by the signing of an arrangement between Yingli and also a holding business developed of creditors and the Baoding municipal government which will certainly see land use civil liberties of Yingli be sold for an estimated fee of RMB2 billion (US$ 304 million).

While land belonging to Yingli is to move in ownership, the business emphasized that the 'New Yingli' would not be influenced throughout the moving of and also facility of brand-new production ability.

The restructure will allow New Yingli to establish 5GW of high-efficiency cell production capability as well as 2GW of high-efficiency module production capability, while a more 3GW module manufacturing center is earmarked for growth in Tianjin, a calculated location chosen because of Tanjin's existing export as well as logistics framework at Tianjin port.

"New Yingli will certainly remain to preserve and also run the production capacity, supply chain, innovation, brand, sales channels and also various other properties of the original production entities as well as accomplish the dedications of the order and also warranty to consumers.

"In the future, brand-new Yingli will depend on the national study systems, create the core modern technology with market competitiveness and also independent copyright civil liberties, ensure the technical innovation of N-type TOPCon, HJT and also keep the worldwide leading degree," the business declaration reviewed.

Yingli's management group will remain in place to run the firm progressing.