Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) Power Faces Lawsuit in Insolvency Probe

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StockSuntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) has announced that group of eight lenders from China filed a petition on March 18 for restructuring of its China subsidiary Wuxi Suntech Power and insolvency. The petition was filed in the Court of Wuxi, China. Its been reported that the court has yet to make a decision whether or not to accept the petition. A spokesperson from Wuxi Suntech said the company does not plan to file against the petition.

In an official note the renowned solar firm revealed that it has not commenced insolvency by itself or any of its other operating subsidiaries. Company designed the restructuring and insolvency procedure in order to restructure Wuxi Suntech and its creditors. Under the supervision of its administrators Wuxi Suntech intends to apply to the court to continue operations.

Wuxi Suntech manufactures solar cells and modules and is the principal operating subsidiary of Suntech Power in China. Company’s management said it will cooperate with the court appointed administrators to ensure all product warranty from Suntechare met.

Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) stock in last session held volume of 10.53 million shares as compare to its average volume of 4.63 million shares. The stock opened at $0.36 hit high price of $0.60 and then closed at $0.600by rising up 1.02%.

Looking at the revenue measures, the company generated sales of 2.68 billion in last twelve months with income of $ -643.90 million. The Company showed a negative -21.92% in the net profit margin and its operating margin is calculated as -13.80%. Company’s annual sales growth for the past five years was 39.35%.

STP past twelve months price to sales ratio was 0.04 and price to cash ratio recorded as 0.23. As far as the returns are concern, STP return on equity recorded as -47.95% while its return on assets stayed at -11.91%.


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