Asia | October 9, 2015

Baobian Electric disclaims connection with Tianwei bankruptcy case

In relation to the recently published news on Baoding Tianwei Group filing for bankruptcy, Baoding Tianwei Baobian Electric Co. Ltd. has issued a disclaimer to clarify the relationship with Baoding Tianwei Group and disclaim connection with the bankruptcy case.

 

In relation to the recently published news on Baoding Tianwei Group filing for bankruptcy, Baoding Tianwei Baobian Electric Co. Ltd. has issued a disclaimer to clarify the relationship with Baoding Tianwei Group and disclaim connection with the bankruptcy case.

According to the statement, the stable shareholdings and independence of Baoding Tianwei Baobian Electric Company Limited (Baobian Electric) is secured by China South Industries Group Corporation (CSGC), the majority shareholder and actual controller of the company with 33.47% company shares, whereas Baoding Tianwei Group Company Limited (Tianwei Group) holds 22.96 % of the shares.

The three subsidiaries of Tianwei Group filing for bankruptcy restructuring are in new energy business, namely Baoding Tianwei Wind Power Blade Co. Ltd., Baoding Tianwei Solarfilms Co. Ltd., and Baoding Tianwei Wind Power Technology Co. Ltd., and they are fully owned by Tianwei Group.

Baobian Electric Company focus in transformer manufacturing has no business or shareholding relationship with these three companies.

Therefore, filing for bankruptcy restructuring initiated by Tianwei Group and its three subsidiaries will not impact CSGC’s position as the majority shareholder and will not cause any significant impact to Baobian Electric Company.

Baobian Electric and Tianwei Group are both independent legal entities affiliated to CSGC and the independence of Baobian Electric as a listed company is secured.

According to the statement, the operation of Baobian Electric is in normal condition and the company has sound cash flow and sufficient working capital for operation.

Source: Transformers Magazine
Image: BTW