solar panel maker suntech declares bankruptcy
Suntech, one of the world\'s largest solar panel makers, was forced into bankruptcy court on Wednesday, the latest victim of a painful recession in the global solar industry.
Suntech Power Holdings said that after the company failed to pay $0. 541 billion to bondholders last week, eight Chinese banks asked the court to declare its bankruptcy.
Suntech said it would not oppose the petition.
For a company that is leading the way in China\'s rapid development, this development is a dramatic reversal
The development of renewable energy industry.
Its founder, Shi Zhengrong, witnessed his billions.
Dollar wealth evaporated.
\"While assessing restructuring plans and strategic alternatives, we are committed to continuing to provide
\"Our global customer base has quality solar products,\" said David King, CEO of Suntech . \".
\"During this period, we will continue to work closely with all of our stakeholders and take the necessary steps to get Suntech back on track for growth.
\"Solar panel manufacturers have suffered huge losses over the past year as capacity has grown faster than demand and prices have plummeted.
Another industry giant, Germany\'s Q-
Filed for bankruptcy in last April.
Suntech, headquartered in the eastern city of Wuxi in Shanghai, was also hurt by a message disclosed in July that said a business partner had forged a $0. 68 billion loan secured by Suntech.
On Monday, the company said it was looking for new financing and wanted to restructure its debt.
The company said 60% of bond owners agreed last week that they would not be able to make rights under the notes until May 15.
But the company said the trustee of the Bonds declared a default, which triggered a default on other debts of Bank of China and IFC.
Mr. Shi, he has a doctorate. D.
Suntech physics Company was established in 2001.
He went to Australia in 1988, and after the university scholarship, when he needed a job, he stumbled into the solar industry.
Mr Shi has become an Australian citizen and he is attracted back by officials in Wuxi who want to develop high
And invested $6 million to launch Suntech.
Later, he acquired his state supporters with the help of Goldman Sachs Group and listed on the New York Stock Exchange in 2005.
His success has made him one of the most outstanding entrepreneurs in China.
In 2006, he was appointed one of the state television\'s annual entrepreneurs and advised Beijing on energy policy.
Forbes magazine estimated his wealth to be $2.
9 billion peaked in 2008, but as Suntech\'s share price plunged, the figure fell to about $0. 5 billion last year.
The excess supply in the solar panel market is largely due to the efforts of the Chinese government to push the industry.
Communist party leaders see renewable energy as a way to generate more
Increase technical positions and curb China\'s surging demand for imported oil and gas.
Attracted by tax breaks and subsidies, hundreds of small Chinese solar producers have risen rapidly.
New competitors are still entering the market as of 2011, with weak demand and oversupply forcing producers to cut prices.
Other major Chinese producers, including Yingli Green, LDK Solar and Trina Solar, reported heavy losses.
This prompted expectations that the government would intervene, forcing companies to merge or close.
From 2010 to last year, the price of polysilicon chips used to make solar cells plunged by 73%.
Battery prices fell 68% and module prices fell 57%.
Major manufacturers have accumulated $17 in debt.
According to Maxim Group, a research firm in New York City, this ratio is 5 billion. Deep-
The Korean conglomerate is moving into the solar industry, adding more competition.
Chinese producers have also been hit by the United States. S. anti-
To offset what Washington says is improper subsidies from Beijing from dumping duties.
European solar producers have also put forward
The EU is demanding higher tariffs on Chinese imports.
Last week, Suntech announced the closure of its US headquarters. S.
Factory of ARRIS Goodyear.
And the cancellation of 43 jobs as a costCutting measures.
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