The company put out a press release today saying that it hired UBS to look into alternatives for the 2013 note maturity:
"[STP] hired UBS as part of an effort to extend 'the maturity of credit facilities' and 'evaluate alternatives,' [...]The bberg article quotes an analyst who says that "converting the notes due in March into common equity isn’t a good option because it would be 'enormously dilutive'".
Suntech has $541 million of convertible notes due in March, more than triple its market value of $169 million.
Uh, yep. It's not a "good option" for shareholders, but I think it's probably the only option. What's the other possibility, a default? That would be even worse for shareholders. The current share price does not seem to price in the two high probability outcomes for shareholders: debt exchange or default.