Yingli Solar Posts Warning about Its Ability to Operate
Yingli Green Energy's recently filed 20-F annual filing and it makes for gloomy reading:
"There is substantial doubt as to our ability to continue as a going concern."
A third consecutive year of losses and $2.1 billion in debt has finally caught up with the company, who the industry believes cannot survive very long into the future.
"Our substantial indebtedness and net loss may adversely affect our business, financial condition and results of operations, as well as our ability to meet our payment obligations," the Baoding, China-based manufacturer said in a filing Friday.
The company was suffocated by the extent of its borrowing, in the billions of dollars, to build manufacturing facilities in China.
The Chinese government has in the past said it would permit consolidation in the solar sector, indicating that struggling firms would not be bailed out.
he company said that it is in negotiations with a major shareholder over the possibility of a loan and/or a private share placement, that could raise RMB600 million (US$96.7 million)
