Chinese solar cell and module maker Suntech Power Holdings Co., Ltd. (NYSE: STP) saw 37 solar power stations invested by a subsidiary namely Global Solar Fund S.C.A. SICAR (GSF) in Italy be sealed up recently.
The New York-listed firm said on September 23 that it received a verdict from a court in Italy on September 21 and according to the verdict, 37 solar power stations invested by its subsidiary GSF in the European market were sealed up due to non-compliance issues. The total installation capacity was about 30 megawatts, accounting for about 21 percent of the total of solar power stations owned by the subsidiary.
Available information shows that it controls an 88 percent stake in GSF currently and the latter has actually become the most valuable assets of it since Wuxi Suntech Power Co., Ltd., another subsidiary of it, announced a bankruptcy restructuring this March.
An industry observer pointed out in an interview later that the asset seal-up would further weaken its liquidation. Solar power stations under the wing of GSF were major salable assets of it and the 37 ones sealed up were estimated at about USD 120 million in total.
Wuxi Suntech Power formally triggered a bankruptcy restructuring on March 20 this year and according to a verdict made on the bankruptcy, the outstanding of loans it gained from nine banks including Bank of China (BOC, SEHK: 3988 and SHSE: 601988) and Agricultural Bank of China Ltd. (ABC, SHSE: 601288 and SEHK: 1288) in both renminbi and foreign currencies reached CNY 7.1 billion as at the end of this February. It should unveil a detailed restructuring plan within six months starting from the day it triggered the bankruptcy restructuring in accordance with concerned laws and that is to say the deadline will be September 20 this year.
People in the know disclosed recently that it would apply to a court in Wuxi for delaying the deadline to around December 20 this year and a major reason was that no investors had showed intention to buy into it due to its CNY 10.7 billion debts. It had selected four strategic investors, including two private firms, namely Trina Solar Ltd. (NYSE: TSL) and Yingli Group, and two state-owned firms, namely China XD Electric Co., Ltd. (SHSE: 601179) and Beijing Putian New Energy Co., Ltd. However, none of them had made a final decision. Some others revealed that it would have five strategic investors and currently, the fifth one was in a close talk with the municipality government of Wuxi.
