Yingli to Restructure Payments for Mid-Term Notes Due Oct. 13

Yingli Green Energy Holding Co. said Wednesday that its holding subsidiary, Baoding Tianwei Yingli New Energy Co., known as Tianwei Yingli, plans to restructure the repayment plan for $157 million of mid-term notes due on Oct. 13.

The notes were issued by Tianwei Yingli as five-year unsecured notes, according to a statement by Yingli today.

The Chinese solar-panel maker expects to receive about $138 million from the liquidation of idle land and demolition of facilities held by one of its wholly-owned subsidiaries, according to the statement.

Yingli will be able to collect a substantial amount of the $138 million to partially repay the notes before year’s end, the company said. The remainder of the mid-term notes are expected to be repaid within a year.

Earlier this month, Yingli reported second-quarter revenue of $438 million, missing the average estimate of $522 million among four analysts surveyed by Bloomberg, and said that 2015 shipments will be at least 22 percent below its previous forecast. The company also said it will write down the value of its assets and record a “significant” charge in the third quarter.

Baoding, China-based Yingli Green Energy’s American depositary receipts have lost 86 percent of its market value since Jan. 1.

Yingli was among dozens of Chinese companies that flooded into the solar business over the past decade. The influx helped push panel prices down more than two-thirds since 2010. It also led to a global oversupply that pushed at least 30 companies in bankruptcy. While the survivors have mostly returned to profitability, Yingli has been hamstrung by debt.

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