Wednesday, May 29, 2013

"Solar Industry Anxious Over Defective Panels"

"Executives at companies that inspect Chinese factories on behalf of developers and financiers said that over the last 18 months they have found that even the most reputable companies are substituting cheaper, untested materials. Other brand-name manufacturers, they said, have shut down production lines and subcontracted the assembly of modules to smaller makers."

4 comments:

RJ said...

What timeline do you see for this to play out with STP?

I think most would agree the equity is close to worthless but we are dealing with a penny stock that is influenced more by HTB rates, buy ins and other shenanigans...

Seems like the Ad Hoc group and the company can continue to postpone the inevitable.

Walter said...

The longer this goes on, the more money comes out of bondholders' pockets and into those of lawyers at Bingham McCutchen.

Also, in the bondholder letter, it says the Ad Hoc Group intends to form a Working Group to restructure the notes via equitization at the holdco level "during the forbearance period".

RJ said...

Seems like a lot to accomplish in just over a month and like you said the longer this goes on, the more money goes to the lawyers..

June seems to be the largest expiration for put options open interest. Will be interesting to see if it stays that way or if they start to roll to other months..

Walter said...

Yeah, I wouldn't be surprised if they had to extend the forbearance again to finish all that. Maybe sometime in July or August? But it sounds like they are making progress and not just stalling indefinitely.