Yingli Fails To Repay Medium-Term Noteholders

Yingli Green Energy Holding Company Limited YGE revealed that its subsidiary, Baoding Tianwei Yingli New Energy Company Limited failed to repay its RMB1.4 billion of medium-term notes due on May 12. According to the company, it would not be able to make the repayment for the remaining portion of its RMB1.0 billion of medium-term notes due on October 13, 2015.

Yingli Green Energy indicated that none of the holders of the notes or other creditors have taken any immediate action for the failure of the repayment of notes by its subsidiary, Baoding Tianwei Yingli.

The company said Tianwei Yingli was still in the process of actively discussing with the holders of the 2011 MTNs and the 2010 MTNs about the possible extension of the repayment dates of both MTNs. The Company indicated that it was exploring various alternative financing plans for repayment of both the notes. That included the introduction of strategic investors to invest into the Company and the Company's subsidiaries, launch of creditors to grant new borrowings to the Company or the Company's subsidiaries, and sales of some long-lived assets including land use rights to obtain additional funds.

The stock closed at $3.38 on Wednesday.