Wednesday, February 27, 2013

"Suntech Holds Talks With Wuxi on Financial Support" ($STP)

What's the story with this silly Bloomberg article?:

"No Chinese solar company has yet received a bailout for its foreign debts. [...] 'The government can offer support through tax policies, credit facilities, negotiations and helping consolidation among companies, while it can’t intervene in companies’ operations directly ... How the bailout works will depend on the local economy and expectations of the solar industry by the local government.] [...] An official in the information office of Wuxi’s local authority declined to comment, saying talks with Suntech were confidential. Calls to Suntech Chairman Shi Zhengrong weren’t answered, and a company representative said Suntech won’t comment."
Hmm... this reminds me of Donald Rumsfeld: "anyone who knows anything isn't talking, and anyone with any sense isn't talking, therefore, the people that are talking to the media, by definition, are people who don't know anything, and people who don't have a hell of a lot of sense."

"Consolidation" means insolvent companies liquidate and survivors pick up the pieces.

P.S. The YTM on the bonds is now 4,400%!

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