• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 4 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 3 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 1 day Gazprom Exports to EU Hit Record
  • 8 hours Oil prices going down
  • 11 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Oil Buyers Club
  • 2 days Why is permian oil "locked in" when refineries abound?
  • 10 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 2 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 8 hours Saudi Arabia turns to solar
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days EVs Could Help Coal Demand
  • 3 hours Are Electric Vehicles Really Better For The Environment?
Alt Text

China’s Surprising Move To Cut Solar Subsidies

China just slashed subsidies to…

Alt Text

Tesla Closing Down Solar Capacity

Tesla is closing down solar…

Alt Text

U.S. Solar Growth Undeterred By Solar Panel Tariffs

Despite the implementation of tariffs…

Jen Alic

Jen Alic

 

More Info

Trending Discussions

Suntech Bankruptcy Bad News for Solar

Suntech Bankruptcy Bad News for Solar

Chinese equity Suntech Power Holdings Co. (STP) filed for bankruptcy last week, with its stock falling 40% after it defaulted on $541 million in bonds, and this having a snowball effect on solar stocks, with other Chinese solar companies plunging.  

Solar stocks are extremely volatile right now and unable to deal with the combination of oversupply and declining demand at a time when government subsidies are being slashed. Suntech’s bankruptcy is the straw that is breaking the solar camel’s back.

This week, China-based solar wafer maker LDK Solar Co. (LDK) saw its stocks plunge 15% riding the wave of volatility sparked by Suntech’s default. LDK is one of China’s four main solar producers, and the other three are also recording net losses over the past year and a half. LDK has more than $3.1 billion in debt and could be the next to fall, though for now it has managed to renegotiate its liabilities and secure more loans despite the fact that its net losses are increasing. 

Related article: Study Finds Libya has More Solar Resources than Oil

Earlier this month, Chinese lenders signed a bankruptcy petition for Suntech over the company’s debt in excess of $2.2 billion. Suntech continues to produce solar panels, however, further compounding the oversupply problem and forcing more drops in prices.

Trina Solar Ltd (TSL), the third-largest solar manufacturer in China, hit a three-month low last week of $3.88, with 2013 net losses reaching 11%.

In the meantime, China has reportedly barred Shi Zhengrong, Suntech’s founder, from leaving the country. Also barred from leaving is Suntech CEO David King. The travel ban will continue as the authorities in Beijing investigate the company’s finances. Shi Zhengrong also holds Australian citizenship and once enjoyed the status of China’s wealthiest man. Shi holds an approximately 30% stake in Suntech.

By. Jen Alic of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News