Suntech (NYSE:STP) has managed to reach a deal with its convertible bondholders to extend the maturity of the debt until August 30, 2013. The company had defaulted $541 million of debt in March 2013 and Chinese banks had sued the company. But the company is still managing to operate and sports a market capitalization of ~$180 million. Like LDK Solar (NYSE:LDK), I don't see a scenario in which the company can make a turnaround. The company's total debt position is too large compared to its size for the company to repay the debt. The company's position is becoming more fragile each day as it loses market share to stronger players like Canadian Solar (NASDAQ:CSIQ...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|