The World's #1 Renewable Energy Network for News, Information, and Companies.

Suntech Directors Quit Saying Solar Maker Has No Plan

Suntech Directors Quit Saying Solar Maker Has No Plan

Suntech Power Holdings Co., the Chinese solar manufacturer whose main unit was pulled into bankruptcy earlier this year, said three directors including the former chairwoman quit saying the company had no business plan.

Susan Wang, Julian Worley and Zhizhong Qiu resigned on Aug. 21, saying they weren’t provided with information they needed to fulfill their responsibilities, the Wuxi, China-based company said today in a statement. Michael Nacson replaced Wang, who took the post of chairwoman in March, Suntech said.

The resignations highlight the divisions among the company’s management after a $541 million bond default and follow the ouster of Suntech founder Shi Zhengrong less than six months ago. China’s solar-panel industry, which supplies more than half the world market, is unprofitable amid a global glut and slower economic growth.

“Rather than the incapability of the management team, the more intrinsic difficulty the company is facing is the huge debt compared with its value,” said Wang Xiaoting, a Beijing-based analyst at Bloomberg New Energy Finance. Suntech’s major advantages, including an established reputation for quality and high-efficiency panels, “cannot provide enough competitiveness to guarantee a survival,” she said by e-mail.

Suntech, once the world’s biggest panel maker by shipments, fell 7.3 percent to $1.01 yesterday in New York. The shares have lost 34 percent this year, battered by insolvency proceedings against its biggest unit, Wuxi Suntech Power Co.

Director Concerns

The former directors cited concern about negotiations with bondholders, cash flow and a lack of clear business plan, Suntech said in the statement. They were also concerned about the potential erosion of internal controls and the impairment of employees’ ability to function effectively.

The concerns are “demonstrative of disharmony and issues of communication between the executive management and the resigning directors that decreased the efficiency of the board’s decision-making process,” the remaining independent directors Philip Fan, Nacson and Kurt Metzger, said in the statement. Nacson was appointed to the board last month by Suntech’s bondholders.

Suntech’s biggest unit was forced into bankruptcy in March after the company missed a debt repayment, opening the way for bondholders to sue the company in the U.S. where its shares and bonds trade. Suntech extended a forbearance agreement with a majority of bondholders until Aug. 30, the company said in June.

Board Size

“The large size and geographic dispersion of the board as previously constituted was not ideal for the company involved in a debt restructuring process because of the need for frequent in person board meetings to discuss and analyze complex issues,” Fan, Nacson and Metzger said in the statement. They see progress being made in regards to the issues raised by the resigning directors.

Nacson, Fan, Metzger, Weiping Zhou, Shi and David King continue to serve as directors of the company, Suntech said in the statement.

Copyright 2013 Bloomberg

Read more solar energy news here.

Lead image: Exit sign via Shutterstock


India's Seabiscuit: How Solar Energy Can Be the Symbol of Hope for Electricity Woes

Aditya Goel, Ornate Solar For those unfamiliar with the story of the horse that Hollywood made famous, Seabiscuit was a small horse who had an inauspicious start to his racing career. History though, remembers Seabiscuit not for his diminutive...
Tesla batteries

Advanced Microgrid to Buy Tesla Batteries for Storage Projects

Justin Doom, Bloomberg Advanced Microgrid Solutions, a provider of energy-storage systems, agreed to buy as much as 500 megawatt-hours of battery capacity from Tesla Motors Inc.

Three Chinese Solar Panel Groups Lose Exemption From EU Tariffs

Jonathan Stearns, Bloomberg

The European Union applied tariffs on three groups of Chinese solar-panel makers that have been exempted from the levies, potentially reviving tensions in the EU’s biggest trade case of its kind.

Stock graph

Green Bonds Sprout as Wall Street Embraces Renewable Energy Debt

Cordell Eddings, Bloomberg Bonds backing clean energy and other sustainable initiatives are booming. Investors are snapping up green bonds at the fastest pace on record, as big banks like Morgan Stanley and Bank of America Corp. pile in with new iss...


Volume 18, Issue 3


To register for our free
e-Newsletters, subscribe today:



PV-201: Introduction to PV Design & Installation

PV 201 Introduction to PV Design & Installation is simply the best i...

PV-301: Advanced PV Design & Installation

This highly desirable and advanced course is intended for the profession...

PV-401: Advanced Field Training

Real world on the job solar installation, training, and experience is th...


Five Reasons to Go Solar Now

Solar’s popularity has skyrocketed recently, thanks to a price dro...

How to Reduce Soft Costs With a Critical Path Map

For solar installers, soft costs are a fact of life. However, they don&r...

Building Rapport

How do you build rapport with your prospect? This is a question that I a...


Tweet the Editors! @megcichon @jennrunyon


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now