United PV offers Yingli a financial safety net

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  State-owned project firm United PV said it would ensure Yingli could "pull through". Source: United PV.

Chinese state-owned solar developer United PV has hinted that it would intervene should Yingli’s financial woes escalate.

The company’s CEO, Alan Li, told Bloomberg that the company would help Yingli “pull through”. Li said United, a Yingli customer, would work with other government owned companies to ensure Yingli was able refinance as required.

Yingli warned on its ability to meet future liabilities in its delayed annual report. Shares in the company plummeted but made a recovery after executives soothed investors’ fears by explaining its potential routes to new funds in order to meet its next RMB1 billion (US$161 million) bond repayment in October.

United PV was unavailable for comment at the time of publication.

Yingli CFO Yiyu Wang told PV Tech that the company was “gradually” decreasing its debt burden and associated interest repayments. Yingli has confirmed that it is looking for new investment either from a private share placement or in the form of a loan.

Wang said the company had not defaulted in the past under tougher market conditions and was confident it would not default now.

Trina Solar CEO Gao Jifan used a quarterly results call on Thursday to welcome "healthy" consolidation in the solar market.

Trina has overtaken Yingli as the largest module maker globally.