Latest News:  


Suntech may seek bailout as deadline for over $345m debt draws near

By Liang Fei (Global Times)

08:08, March 15, 2013

Suntech Power Holdings Co, the world's leading solar panel producer, is currently seeking a government bailout. An announcement concerning the matter may be released in the next few days, a local government official told the Global Times Thursday.

The company, based in Wuxi in East China's Jiangsu Province, now has a debt burden of $575 million worth of convertible notes. Suntech said Monday it had signed a forbearance agreement with holders representing over 60 percent of the notes to extend the repayment deadline from Friday to May 15.

However, analysts said that the cash-strapped company is not likely to resolve the debt load by itself.

In the first quarter of 2012, Suntech reported net losses of $133 million, its fourth consecutive quarterly loss, and the company has not released its quarterly figures since.

Zhu Ying, an official in the Wuxi government publicity department, told the Global Times Thursday that a related announcement will be made in the next few days.

Tao Maosheng, a spokesperson for Suntech, also told the Global Times that an official announcement on the matter may come soon.

Meng Xian'gan, deputy director of the China Renewable Energy Society, told the Global Times Thursday that overall China's solar industry should fully embrace market competition and phase out some of its less competitive firms.

"However, in the case of Suntech, the local government should show some support, as the company played an important role in the development of China's solar industry. And the Suntech brand should also be protected," Meng said.

Media reports said that Suntech is very likely to be taken over by a holding company under he Wuxi government.

Suntech's shares fell by 44.6 percent to 46 cents a share in New York as of 10:24 am local time on Thursday on bankcruptcy concerns.

The loss-making company is also suffering from unstable management, as the company's former president Shi Zhengrong has been sued in the US for alleged insider trading and was dismissed from the board on March 4.

We recommend:

MediaMarkt closes all Chinese stores

Top 10 Chinese cities with highest urbanization quality

Chinese investment in Africa: Digging deeper

E-commerce changes commercial activities

Nation may limit gold to 2% of foreign reserves

Lu Zhaoxi named Alibaba's new CEO

Email|Print|Comments(Editor:MaXi、Liang Jun)

Leave your comment0 comments

  1. Name


Selections for you

  1. New-type guided missile frigate 'Bengbu' is commissioned to PLA Navy

  2. 14th Chinese naval escort taskforce in drill to rescue hijacked ship

  3. Kim Jong Un visits Defence Detachment

  4. Panic over dead pigs prompts satire

  5. Hailstones diameter hit SW China

  6. Chile unveils world's largest observatory

  7. Centenarian couple become cewebrities

  8. Anchors join Shenzhen TV

  9. South Africa is ready for BRICS

  10. Cities with highest urbanization quality

Most Popular


  1. How to start transformation and upgrading?
  2. Nation facing energy security threat: experts
  3. Plenty of hard work still to be done on rail reform
  4. 'Made in China' not equal to 'self-made in China'
  5. Efforts needed to nurture ethnic culture, language
  6. Filipina maids or local ayi?
  7. China won't take part in currency wars
  8. Long live the kingdom of bicycles!
  9. Income gap still hot topic
  10. Bigger does not always mean better for megacities

What’s happening in China

Hailstones measuring 7 cm in diameter hit SW China

  1. Anti-infection drugs induce most adverse effects
  2. Rainstorm widow sues over car plate
  3. White collars to have more travels this year
  4. Parents taking children to beg lose guardianship
  5. East China fire kills 6 family members