Sneha Shah
Long/short equity, research analyst, tech, solar

Suntech - For How Long Will It Kick The Can?

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...

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