S&P 500
7,617.20
-0.07%
Dow Jones
51,328.50
-0.08%
Nasdaq 100
30,667.20
-0.16%
Russell 2000
2,932.48
-0.02%
FTSE 100
10,379.30
-0.08%
Nikkei 225
68,501.70
+1.48%

Energy

Suntech Defaults on Bond Payment

Photo of Paul Ausick
By Paul Ausick Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Alternative Energy sources

thinkstock
As expected, Suntech Power Holdings Co. Ltd. (NYSE: STP) failed to make a required $541 million bond repayment scheduled for last Friday. The company claimed last week to have reached forbearance agreements with about 60% of its foreign bondholders, who agreed to give the struggling solar panel maker an additional two months to either pay or renegotiate.

The failure to make Friday’s payment is a default and a bankruptcy filing is a distinct possibility. Bondholders who did not agree to any forbearance are reported to be demanding that the trustee file an involuntary bankruptcy notice. If such a filing should occur, the bankruptcy could be either a Chapter 7 liquidation or a Chapter 11 reorganization. The trustee for the bonds is Wilmington Trust Co. of Wilmington, Delaware.

Suntech is the second-largest Chinese company as measured by revenue listed on U.S. exchanges, and a bankruptcy filing either by or on behalf of Suntech would be the highest visibility bankruptcy by a Chinese firm in many years.

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Paul Ausick |

It’s Official: Suntech Receives Notice of Default

thinkstockChina’s one-time leader in the production of solar panels has officially been notified by its trustee that the company is…

Paul Ausick |

The Coming End of Suntech

thinkstockChinese solar panel maker Suntech Power Holdings Co. Ltd. (NYSE: STP) announced earlier this week that it will close its…

Douglas A. McIntyre |

Detroit Downgraded by Fitch

ThinkstockDetroit has enough problems with its shrinking population and falling tax bases, its Chapter 9 filing, and battles with pensions…

Judge Gives PG&E Bondholders Reorganization Plan Equal Footing With Company Plan
Paul Ausick |

Judge Gives PG&E Bondholders Reorganization Plan Equal Footing With Company Plan

A group of PG&E bondholders and wildfire victims won approval for consideration of a reorganization plan of the company that…

Paul Ausick |

Why the Suntech Bankruptcy Ruling Was Delayed

ThinkstockA Chinese court has delayed a ruling on the restructuring plan proposed by solar PV maker Suntech Power Holdings Co.…

Paul Ausick |

A Look at RadioShack at $0.99

RadioShack shares recently posted an all-time low of $0.81. A week later the shares have climbed 22% to $0.99. Is…

Douglas A. McIntyre |

Chrysler Makes A GM (GM) Bankruptcy Harder

The Chrysler bankruptcy makes a bankruptcy at GM harder because the American consumer may only be able to deal with…

Spirit Airlines Stock May Go to $0
Douglas A. McIntyre |

Spirit Airlines Stock May Go to $0

Spirit Airlines reportedly may be poised go bankrupt. A Chapter 11 filing would likely wipe out investors completely.

Douglas A. McIntyre |

Treasury Talks With Chrysler May Foul Up GM (GM) Negotiations

The Treasury has started to sweeten terms for Chrysler creditors in an attempt to keep the car company out of…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826