China’s banking regulator has asked the country’s development bank to pay out loans to indebted solar manufacturer Yingli Solar.
According to reports by Bloomberg, the China Banking Regulatory Commission (CBRC) has requested that the China Development Bank (CDB) be provided with RMB7.5 billion (US$1.16 billion). RMB2.5 billion is already agreed but the reports claim a further RMB5 billion has been requested by the regulator.
A consortium of banks is reportedly in talks with the CBRC about a plan to support Yingli. Last week the company announced that talks with bondholders over a postponement of existing repayment schedules had failed to reach an agreement. The company owes more than US$200 million on 12 May unless it can negotiate an alternative arrangement with its creditors.
Yingli Green had US$1.55 billion in short-term borrowings, including current portion of medium notes and long-term debt and total current liabilities of US$2.96 billion at the end of the third quarter of 2015, the last time the company filed a quarterly report.