A subsidiary of solar panel manufacturer Yingli Green Energy Holding Co. Ltd. said it will fight a court order in China requiring it repay some of its overdue debts.
Baoding Tianwei Yingli New Energy Co. Ltd. was ordered to pay a lender the remaining principle and overdue penalty on medium-term notes that were due in October 2015 and the principle, interest and overdue penalty on medium-term notes that were due in May 2016, Yingli said May 18 in a securities filing. The noteholder is owed 65.7 million Chinese yuan, or approximately US$10.3 million, in principle.
Tianwei Yingli plans to appeal the ruling "while continuing to seek a mutually beneficial solution with the Note Holder out of court," Yingli said.
The principle that Tianwei Yingli was ordered to repay represents approximately 3.7% of the total amount that is still outstanding on medium-term notes that were due in 2010 and 2011. At the end of April, Yingli was in default on $478.6 million of short-term borrowings.
"While maintaining good relations with many banks and other financial institutions in China, we have always innovated to find a solution to properly resolve our debt-payment issues and improve our liquidity," Yingli Executive Director and CFO Yiyu Wang said on an earnings call April 26.
As of May 18, 2018, US$1 was equivalent to 6.38 yuan.
