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Solar panel maker Yingli inks new raw material contract to settle dispute

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Solar panel maker Yingli inks new raw material contract to settle dispute

A raw material supplier to Yingli Green Energy Holding Co. Ltd. agreed to suspend damage claims against the solar panel manufacturer in exchange for a new 10-year sales contract, Yingli said Dec. 18.

Under the settlement, Chinese affiliates of Yingli will continue buying polysilicon from Wacker Chemie AG from 2019 to 2028 at specified quantities and prices, and Wacker Chemie is entitled to keep forfeited prepayments related to previous supply agreements between the companies, Yingli said.

A Wacker Chemie spokesperson did not immediately respond to a message seeking comment Dec. 18.

Yingli previously acknowledged failing to comply with some supply contracts as it sought to renegotiate agreements in response to falling polysilicon prices. The company said in April that one of its polysilicon suppliers, which it did not identify by name, had filed a request for arbitration with the London Court of International Arbitration in an effort to collect $897.5 million.

Yingli CFO Yiyu Wang told investors in late 2017 that he believed a "mutual agreement" was possible if Yingli could "prove that we have the capability to have a long-term business relationship with the supplier."

In June, Yingli said it was being removed from the NYSE for failing to maintain a sufficient market capitalization. The company's American depositary shares now trade on the OTC Pink market, which includes foreign stock issuers that limit U.S. disclosures as well as "distressed, delinquent and dark companies not willing or able to provide information to investors," according to the OTC Markets website.

Several months later, Yingli said one of its subsidiaries withdrew an appeal challenging a court order in China requiring it to repay some of its overdue debts. The subsidiary, Baoding Tianwei Yingli New Energy Company Ltd., "plans to continue to communicate with the Note Holder regarding a feasible payment scheme to satisfy the court judgment," Yingli said in an October securities filing.