On June 9 EST, photovoltaic enterprise Yingli Green Energy Holding Co., Ltd. 
("Yingli") (OTC Pink: YGEHY) announced that Baoding Municipal Intermediate 
People's Court has officially accepted the restructuring application of its 
subsidiary in China, namely, Yingli Energy (China) Co., Ltd. This means that 
the debt restructuring efforts over the last five years have officially entered 
the judicial restructuring phase. An administrator has been appointed to 
oversee the restructuring work, and it is expected that in the following 
months, a restructuring implementation plan will be formulated and binding 
through judicial decision. According to legal professionals, the initiation of 
the judicial process is essential to facilitate the effective implementation of 
the restructuring plan. 

"With the joint efforts of relevant departments and major creditor banks, the 
direction and specific plans for the restructuring have been basically 
determined," said Yiyu Wang, CFO of Yingli Green Energy. Pre-restructuring 
stage tasks have been completed, such as the assessment, auditing, and the 
formulation and improvement of the restructuring plan. Creditors have reached a 
consensus that the restructuring plan will follow the principles of 
marketization and rule of law. The core contents of the restructuring plan 
include the conversion of a significant portion of the financial debts of 
Yingli's major PRC subsidiaries into controlling equity interests in the 
subsidiaries, full and orderly repayment of parts of financial debts and other 
payables, and fund injection of third-party platforms. Besides, there is a good 
chance that strategic investors will soon be introduced to further improve 
assets and cash position and enhance competitive advantages.

In order to promote a smooth restructuring, Yingli will actively cooperate with 
the court and the administrator in accordance with the law, fulfill its 
obligations, protect the legitimate rights and interests of all parties and 
communicate with related parties. Meanwhile, Yingli will also maintain regular 
production and operations and continue to undertake the existing orders and 
warranties of the subject of restructuring. The performance of labor contracts 
and salaries and benefits of employee will not be affected, and the legal 
rights and interests of suppliers and customers will be protected.

It is expected that after entering the restructuring period, Yingli will focus 
on the implementation of the restructuring plan, as well as the innovation of 
its business operations model, the optimization of capacity distribution, the 
upgrading of facility production lines, and the release of advanced technology 
reserves. The newly restructured Yingli will return to healthy development as 
its debt ratio is expected to drop to a medium or low level in the industry, 
and its cash flow will be greatly improved. Additionally, technological 
leadership and product competitiveness will be further enhanced to improve the 
stability and competitiveness of the industrial supply chain.

SOURCE: Yingli Green Energy Holding Company Limited