More Trouble For Suntech: Italian Courts Seize Solar Plants
Just when it appeared that Suntech Power Holdings (STP :NYSE) had developed a plan to satisfy its creditors and help it rise from its financial difficulties, the company suffered another blow today. Suntech announced that Italian courts have seized 37 solar parks constructed by Global Solar Fund (GSF), an investment fund of which the China-based solar manufacturer is an 88 percent owner.
The 30 megawatts of power seized accounts for 21 percent of the fund company’s power generation capabilities.
The Court of Brindisi seized the plants due to improper operation of the solar plants related to authorization issues for the solar parks and matters related to the improper collection of feed-in tariffs.
Suntech said they will try to work with GSF to continue operating the solar plants.
With Suntech hoping a newly appointed CEO and a credit restructuring plan will help the resuscitate the solar manufacturer from its previous investment missteps, another setback like this will not help renew investor confidence in the company.
Shares of Suntech were surprisingly unchanged in afternoon trading.