Replies to post #608 on Suntech Power Holdings Co., Ltd.(fka STPFQ)

[walt373]

That's correct, only the Wuxi Suntech subsidiary has declared bankruptcy. However, the $541mil convertible notes that triggered the subsidiary bankruptcy, is at the holding company level. Those matured on Mar 15 so they are already in default. It's just a matter of time until they are taken to court. Either they will declare bankruptcy or their bondholders will force them to.

There are also other liabilities at the holding company level, including guarantees of subsidiaries' bank loans, loan guarantees for GSF, and other loans.

Also, almost all of the unrestricted cash and physical assets were in Wuxi Suntech.

There are some useful charts near the bottom of this presentation: http://www.sec.gov/Archives/edgar/data/1342803/000110465912077662/a12-26837_1ex99d1.htm.

[Reyman]

I agree with exactly what you are saying.

Major Media outelts totally didnt understand this and I am not sure they still do. They rushed to stick a fork in Suntech without understanding it was Wuxi the sub filing. I am not saying the impact will be any different because who knows how much they can go after parent company for. I mean heck 5 minutes after the first press release, Suntech send out another press release clarifying they did not go Bankrupt.

I found an article online that discussed Chinese Bankruptcy and this exact scenario. The article was elusive as to impact on parent, it could go either way.

You know how stocks are, I was amazed to watch that people were trading GM stocks when they were dead.

This is not the same as the GM situation and I think you are right, it could go the .10 cent route or who knows the other way?

The days ahead for Chinese Solar are uncertain.