Suntech Solar Somewhat Resilient to Notice of Default- But Other Solar Stocks Take a Beating
Chinese solar companies with North American listings are experiencing a deep sell off in today's session following news that Suntech Solar ( STP ) has received from the trustee of its 3% convertible notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of $541 million that was due to holders of the notes on March 15, 2013.
Although the default was widely expected and is only denting STP's share value today, with the stock shedding 3%, it is hammering other Chinese solar stocks amid concerns about what the default will mean for their futures. Insider Monkey said: "China's new government has said that consolidation in solar is necessary and it will allow companies to combine or fail but this is the first indication that they'll actually let that happen." There is also talk that the government will cut solar subsidiaries.
LDK Solar ( LDK ) is down 10.5%, ReneSola Ltd ( SOL ) is down 10.2%, Daqo New Energy Corp ( DQ ) is down 5.5%, Yingli Green Energy Holdings ( YGE ) is down 6.9%, and JA Solar Holdings (JASO) has shed 4.8%.