Boston, MA 11/01/2013 (wallstreetpr) – Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) deals in design, development and marketing of solar panels and related products. The company has a market capitalization of $249.56 million as of October 31.
The company is to facing Chapter 7 bankruptcy petition from some of its U.S. bondholders. However, it has vowed to halt the bankruptcy petition field against it in the U.S. The bankruptcy filing was made by four of its U.S. bondholders who together hold $1.6 million of its convertible senior notes. The notes were due March 2013 but the debt-laden company defaulted. If the Chapter 7 petition succeeds, the company’s assets would be put up on sale to repay its creditors. Wuxi Suntech, STP’s main manufacturing unit, filed a bankruptcy protection in China following the company’s default on payment on $541 million bonds (3% of its convertible senior notes).
The lag of the global panel prices and the rescinding of European market subsidies have negatively impacted the operations of STP, once world’s largest panel maker. With an ailing financial health, the company’s stock price is hovering on the all-time low as investors step aside for financial safety. In Thursday’s trading, the stock continued the downward streak, shedding 1.43% to $1.38 at bell toll. And the stock still remains vulnerable. STP shares are trading on a year’s high of $1.99, which sharply contrasts to its life-high of $86.28 in Dec 2007.
It’s emerging that analysts had long warned overseas bondholders of STP’s senior notes that the company didn’t have better chances of repaying them. And this came to pass.
However, a glimmer of light seems to be at the end of the channel following reports that Wuxi Guolian has agreed to investment some $150 million in the cornered company so that it could proceed with its restructuring program. If this money does come, it sure will be a short in the arm for the beleaguered panel maker.
