Biggest Solar Collapse in China Imperils $1.28 Billion – Bloomberg 03-21-13

Salient to Investors:

Angelo Zino at S&P Financial Services said there is no way the Suntech shareholders are going to get anything. Zino said a host of companies have gotten billions of dollars from Wall Street investors, who will ultimately get nothing.

Risks to investors in solar have spread after the collapse of Solyndra and bankruptcies in Germany.

James Millar at law firm Wilmer Cutler Pickering Hale & Dorr said it’s unclear how the Chinese filing will affect U.S. creditors.

Aaron Chew at Maxim Group said investors may lose everything in a nasty fight between Western bondholders and Chinese banks over assets not enough to go around. Chew said the Bank of China is one of the last companies he’d pick a fight with over an asset in China.

Christopher Peterson at law firm Kaye Scholer said US creditors’ fundamental disadvantage is they need the consent of a Chinese court to get action in China, which the Chinese lenders don’t have to face.

Gordon Johnson at Axiom Capital Mgmt said Suntech remains in production so its failure won’t alleviate the global panel glut.

Four of the six top panel manufacturers are based in China.

Alex Morris at Raymond James said if you’re an investor and did not see this coming, it’s on you.

Read the full article at http://www.bloomberg.com/news/2013-03-20/biggest-solar-collapse-in-china-imperils-1-28-billion-energy.html

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