Suntech's Wuxi arm may file for bankruptcy by Mar 20
(SeeNews) - Mar 11, 2013 - Chinese solar panel maker Suntech Power Holdings Co Ltd’s (NYSE:STP) subsidiary Wuxi Suntech Power Co is expected to start bankruptcy proceedings between March 15 and March 20, the China Business Journal said today.
A significant portion of Suntech Power Holdings’ business is being carried out through the troubled unit. The financial news provider cited a source in the know as saying that the subsidiary would seek bankruptcy protection if nothing unexpected happened. According to the report state-owned enterprise Wuxi Guolian Development (Group) Co intended to acquire the business of Wuxi Suntech and manage the restructuring activities.
China Business Journal quoted its source as saying that if Wuxi Suntech did not initiate such a reorganisation now, it would later need to liquidate and dispose of its equipment and factories.
On Thursday The 21st Century Business Herald said, citing sources in the know, that The Bank of China Ltd (HKG:3988) was suing Suntech Power Holdings over unpaid obligations, with a hearing to commence later this month. According to the paper’s sources, a board of seven Chinese banks led by the Bank of China have in the closing quarter of 2012 refused to borrow any more money to Suntech if its founder and ex-chief executive Zhengrong Shi did not leave the company or dispose of his controlling interest in it. The company needs the loans as it has billions of debt maturing soon, the report said. Just earlier this week Shi was removed as chairman.
awesome - this is big news, if suntech can't make it many other chinese solars are in trouble. guess what? once this news gets absorbed, spwr and fslr will soar. with decent second half projections april 9th, fslr could double near term easy..glad i loaded up last week