The parent company of PV manufacturer Tianwei New Energy has filed for bankruptcy dragging the company into the proceedings.
Baoding Tianwei Electric Co said in a financial filing that it had filed for bankruptcy reorganisation, due to continued weakness in certain subsidiaries business since the 2011 solar industry downturn and the subsequent overcapacity and continued price declines.
The continued losses at certain subsidiaries gradually brought the company into the position of seeking protection from creditors as well as the inability to repay maturing debt, according to the statement.
Tianwei failed to pay around US$13.8 million interest on a bond in April 2015 and is a subsidiary of struggling state-owned, South Industries Group Corp, the first state-owned company to default on bond payments in China.
Tianwei’s polysilicon subsidiary filed for bankruptcy proceedings in 2014.