Solar Panel Maker Bids for Equity Stake With Suntech Power Holdings
Chinese solar panel maker Shunfeng Photovoltaic International Ltd recently placed a bid to purchase stakes of troubled rival Suntech Power Holdings Co. a company under a sea of debt. The Hong Kong listed company had made its bid with Suntech’s debt administrator for an equity stake and a proposal to help restructure its debt.
Shungfeng have already made a 500 million yuan bid deposit that is aimed to strengthen the solar cell and module manufacturing capabilities of the company and to aid its diversification of its operation of their solar power plants. Finance experts states that the acquisition is probably part of the company’s expansion plans that will strengthen their production capabilities of solar cells.
For the moment the company’s domestic debt is closely monitored by overseas creditors who are expecting to recover a fraction of their capital.
Due to a slump in solar panels globally, Suntech have filed for bankruptcy protection last March just five days after its parent company forced default on its US$ 541 million convertible bond. A statement was also released by the company in March saying that its primary goal is to fully restructure its debt obligations and at the same time continue the production of solar power cells and plant operations.