Hanergy Unit Could Be Pushed Into Bankruptcy

What’s new: One of the main units of Hanergy, a maker of equipment used to make solar power products, could get forcibly moved into bankruptcy following an outsider’s request.

A Beijing judge is reviewing the request from the person named Xiao Lei regarding Hanergy Mobile Energy, according to the application seen by Caixin that had a public release date of July 2. Xiao was not a Hanergy employee and may be one of the company’s creditors.

A lawyer familiar with the bankruptcy process estimated a judge is currently considering the case and deciding whether to accept or reject it.

What’s the background: Hanergy is a former new energy highflyer that has fallen on hard times in China’s highly competitive industry for solar panels and the equipment and materials used to make them.

In January, a company backed by Hanergy Mobile failed to repay a tranche of debt raised to finance a factory project in Northeast China’s Liaoning province. And in April Hanergy also failed to pay millions of dollars in fees it owed for patent applications.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Yang Ge (geyang@caixin.com)