Suntech bankruptcy outcome

odyd12

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Wednesday, April 3rd 2013, 6:48am

Suntech bankruptcy outcome

They are saying that only 600MW of fully automated plant will be kept, the other Wuxi assets will be closed as part of the proposals. They have orders but cannot fill them as they have no cash flow. So other Chinese subsidiaries are not operating at full capacity. We need more detail. Some say 70% others point to 1.2GW which is about 50%.
The statement was that process is being made in orderly fashion. 400 creditors or something has been registered to date. They are talking about selling land among other assets.

And there are strategic investors. Someone would pick up that automated factory fairly quick for pennies on a dollar.

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Pop2mollys

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Wednesday, April 3rd 2013, 7:18am

Sounds like good news. Suntech will not be allowed to keep unprofitable market-share.

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joshchang

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Wednesday, April 3rd 2013, 7:38am

Rumor says:

1. P1 (cell), P2 (module), P3 (cell) factories will be in fire sale.
2. P4 (automated factory) will be kept.

Land (after P1-P3 sale) will be converted to commercial use to provide cash flow.

http://news.xinhuanet.com/fortune/2013-04/03/c_124537162.htm

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odyd12

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Wednesday, April 3rd 2013, 7:58am

Josh what about other plants outside Wuxi?

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singular

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Wednesday, April 3rd 2013, 8:16am

Is there a possibility that the reason SOL recently took 50 million dollar loan is to scoop up Suntech assets for cheap?

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Djovanny

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Wednesday, April 3rd 2013, 8:27am

Odds are better for TSL who took 200 mills

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joshchang

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Wednesday, April 3rd 2013, 8:31am

Quoted from "odyd12"

Josh what about other plants outside Wuxi?

Not sure, not mentioned in the article. It does mention stp has 3 other manufacturing bases, but wuxi suntech is taking all debt not suntech power.

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odyd12

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Wednesday, April 3rd 2013, 9:07am

Original event accounted by Solarzoom seen those subs to be closed. They were expensive to operate and produced subpar product. Now it seems like they operating independently of Wuxi Suntech and still for Suntech Power Holdings?

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Pop2mollys

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Wednesday, April 3rd 2013, 9:18am

"By the way with all of STP trouble there is no way they will be able to keep pumping out 2GW+ annually . You might as well take ATLEAST 1.5GW of that off line they might restructure and run like 500 MW and try to work their way back into mix. No way capacity is not taken offline."

Pretty damn close on my guess from Monday...

This is great news!! Now media has to pick it up. There were a TON of articles saying how STP capacity was all staying on line....

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joshchang

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Wednesday, April 3rd 2013, 9:39am

Quoted from "odyd12"

Original event accounted by Solarzoom seen those subs to be closed. They were expensive to operate and produced subpar product. Now it seems like they operating independently of Wuxi Suntech and still for Suntech Power Holdings?

Looks like all outdated equipments will be sold but 600 MW automated factory will be kept. Depends on the agreement of debt converting to equity, STP might be in a much better shape imho. It will have way less debt and efficient manufacturing lines.

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joshchang

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Wednesday, April 3rd 2013, 9:45am

Quoted from "Djovanny"

Odds are better for TSL who took 200 mills

Definitely much better chance for TSL to get those since STP and TSL are in the same province and now local government is selling those equipments for cheap...

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Djovanny

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Wednesday, April 3rd 2013, 10:13am

Nice news overall . Few days ago pop2moly postet link about carbon trade platform in china i c it as very important factor to bring grid parity faster in china . No more ez money for solar industry will kickout lots of competitors and rising demand . Record polution lvl in china . New gavernment in china . All this factors are great fundamental turn around . This right time to go long . Good luck to all

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Pop2mollys

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Wednesday, April 3rd 2013, 11:29am

Odyd obviously we want this confirmed.. But this is type of news the market is starving for. The critics biggest argument is overcapacity and until their is consolidation the strong can't emerge and thrive. Even after STP claimed BK tons of critics including Gordo said it didn't mean anything because all capacity would fully be kept on line. Despite the tremendous amount of pressure solars have been experiencing I'm more optimistic than ever about the short and long term future of solar. I mean Jeeezus if ASP stay flat from here we will see profitable solars by second half of this year and we are already in April.

I feel like good news like this has to get on mainstream, any chance you could get this out there more mainstream with your connections?

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Djovanny

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Wednesday, April 3rd 2013, 11:39am

Whoever will pick up stp capacity will get title " world biggest solar company"

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Pop2mollys

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Wednesday, April 3rd 2013, 12:21pm

So STP capacity was well over 2GW and will be reduced to around possible 600Mw if this is confirmed. So their US plant closed for good. Everything overseas will be put on fire sale. Someone will pick up some of it and some of it will be lost for good which is great! Even if someone picks it up and it's still a big if they will need to take time to incorporate it into their own processes which will take time. This is what we have been waiting for capacity taken offline and consolidation, meanwhile everyone and I mean everyone has been saying all of STP capacity was staying online with STP .... Here is a small sample

“The Street assumes that because Suntech went bankrupt its capacity will go offline, and that’s not the case,” said Gordon Johnson, an analyst at Axiom Capital Management. “Insolvency in this case is a takeover by a state-owned entity. This is very negative for the market.”

The record need to be set straight because what is unfolding between surging demand and capacity quickly being taken offline is a huge bull indicator of sector...

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Pop2mollys

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Yesterday, 11:21pm

Confirmation....

http://www.wantchinatimes.com/news-subcl…000003&cid=1102

Only 600MW will live on, meaning ever single analyst who wrote articles including Gordo about how all capacity would be kept on line at STP need to apologize and rewrite articles. This is great news, about 1.6GW just got taken offline....

Then updated pipeline in Japan has BNEF increasing installations in Japan by an ADDITIONAL 3-5 GW from previous estimates....

Capacity vs demand imbalance is shrinking fast...

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odyd12

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Today, 12:02am

There is 1,800 capacity in Wuxi, so I think 1.2GW will be sold off,

"The first of those three subsidiaries is cell manufacturer Luoyang Suntech, holding 200MW of cell capacity and considered to have the most expensive and the oldest cell production lines. The second is Shanghai Suntech, apparently reminiscent of the thin-film production facilities as suggested by Solarzoom, but according to 20-F filing 2011 Annual Report, this location also holds 400MW of cell and module production lines with the company’s high-end efficiency product, the “Pluto” module. Finally, the third subsidiary is a facility manufacturing solar ingots and wafers; however, there is no clarity whether both Zhenjiang Rietech and Zhenjiang Rende New Energy Science Technology Co., or just one of them, will be allowed to go bankrupt. Suntech’s total wafer capacity was quoted by the company recently as 1.65GW."

No word on those other plants being shut down, but they were suggested to go first as being old and expensive.
That 600MW is only 40% owned by Suntech Wuxi and rest by Wuxi Industrial Development Group and Wuxi New District E&D Group.
The way this is going it looks to me that they are selling off the assets to pay creditors and will keep 40% of Suntech's owned asset for themselves (Wuxi will) I think that means that wafer factories as well Shanghai and Luoyang will be sold off as well. Shanghai has Pluto.

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Pop2mollys

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Today, 12:23am

Thanks for clarification odyd.... Good news

Hopefully the BS in all those articles out there about STP with all of it's capacity being kept online within company can be clarified now. The bears said there couldn't be another solar bull market till there was bankruptcies and consolidation. Well here it is, happening fast right before our very eyes.

Btw I think Gordo is losing his edge.... Couple bad calls lately.

http://www.businessweek.com/news/2012-01…axiom-says.html