solar panel maker suntech defaults on $541m payment
Suntech electric power holdings\'s statement is a serious setback for a company that has been praised by the Communist Party of China as a leader in efforts to make China the center of the renewable energy industry.
Its founder, Shi Zhengrong, became one of the industry\'s most prominent entrepreneurs and billionaires, but as the company\'s share price plunged, most of his wealth evaporated.
Bankruptcy judge OKs Solyndra plans to vote for the United StatesS.
Solar companies cheered tariffs on SolarCity, China\'s rival. Shares in SolarCity soared in initial public offerings. The company is \"exploring strategic alternatives with lenders and potential investors,\" it said in a statement last year.
Trend News debate highlights the death of missing students the Missouri abortion clinic shot the \"mastermind\" arrested Suntech was supposed to pay $0. 541 billion in bonds on Friday, but after a major loss in the past year
The company said it had reached an agreement with 60% of bondholders to postpone payment, but Monday\'s announcement said the bond trustee had declared a default.
It said it triggered defaults on other debts of international financial institutions and Chinese lenders.
\"It is a very difficult time for our company and our industry, but Suntech\'s management and board are committed to finding a way forward, the rights and interests of all its members, including shareholders, Bill holders, lenders, customers, \"suppliers and employees,\" said Kim, will be taken into account.
The sharp decline in solar panel prices over the past few years has erased profits from solar panel manufacturers around the world.
Suntech was also hurt by a leak in July that said one of Suntech\'s business partners had forged a $0. 68 billion mortgage. Suntech\'s U. S.
In the days leading up to the debt deadline, stocks fell on fears that the company might be forced into bankruptcy.
The shares have fallen nearly 80% in the past 12 months, down another 2 cents to 68 cents in trading on Monday morning.
Suntech said it was in talks with Bill holders and other lenders to reach an agreement to restructure the debt.
About 60% of the bill holders agreed last week that they would not be able to make the rights under the bill until May 15.
The company said it was not aware of any legal action against any of its bill holders.
China\'s solar producers have been hit by a glut in the market caused by the government\'s efforts to push the solar industry.
Lured by tax breaks and subsidies, hundreds of small Chinese producers poured into the industry, and newcomers didn\'t show up until 2011 when weak demand and oversupply forced 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 fell by 73%.
The price of the battery has dropped by 68%, and the price of the module has dropped by 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.
Shi Guangsheng publicly criticized the tariff, saying that Suntech had not received improper support from the government.
Last week, Suntech announced the closure of its US headquarters. S.
The plant in Goodyear, Arizona, has canceled 43 jobs.
According to Forbes magazine, Shi Guangsheng\'s wealth is $2.
9 billion peaked in 2008.
The company said last year that it had fallen to about $0. 5 billion as Suntech\'s share price plunged.