Suntech's most valuable overseas assets seized and restructured chess game added Dark Horse

Suntech Power (NYSE:STP) September 23 issued a notice, the company received a notice issued by the Court of Brindisi, Italy, on September 21, the decision to seize the Suntech power under the global solar Fund S.C.A Sicar (hereinafter referred to as GSF) investment in 37 solar power plants , with a total installed capacity of about 30MW, accounting for about 21% of the total installed capacity of GSF solar power plants. After a series of changes, Suntech currently has a gsf88% stake, while Suntech's subsidiary, Wuxi Suntech, announced the bankruptcy reorganization process, GSF also become Suntech's most valuable asset. One industry analyst told reporters that for Suntech, the biggest impact of the freeze on GSF assets was the further weakening of Suntech's liquidity, which is now the most likely asset for Suntech, with a frozen asset worth about $120 million trillion. At the same time, the 2-quarter PV market has warmed up, but also changed the structure of Suntech restructuring in Wuxi. A new strategic investor has now entered the reorganization list, and its emergence will completely reverse the current pattern. The most valuable overseas assets are frozen GSF is an investment fund set up by Suntech to invest in a European power plant, and over the past year GSF has become a catalyst to pull Suntech off the altar. Suntech was released in the 2010 FORM20-F company Annual Report, and the Court of Brindisi, Italy, approved a survey of the compliance of several GSF investment companies in the construction licensing process for solar power plants in the area. August 29, 2012, Italian courts filed criminal proceedings against GSF, accusing GSF of illegally building solar power plants in Italy and defrauding the government of subsidies. The specific content is that 11 of the GSF's 5 of the illegal construction of installed capacity of more than 1MW solar power plants, the solar power plant division into a number of smaller parts to apply less stringent and faster approval procedures, so that it can enjoy the Italian government's generous subsidies for renewable energy. In addition, in the case of the power station is not completed, make a false statement of the construction of the plant, in order to catch the deadline to qualify for subsidies. In the court's ruling, the court's lawsuit was mainly charged with the possibility of improper operation of multiple solar power stations in obtaining construction permits, especially in the case of environmental assessment, design and the acquisition of tariff subsidies. In a September 23 announcement, the court also ordered a freeze on feed-in tariff subsidies and investment gains from these plants. According to Italian legal procedures, GSF and some of the companies involved in the investment and construction of power stations were served with orders for pre-trial detention. In order to determine the next step, GSF is currently assessing the rules required by the court, and Suntech is collaborating with GSF to maintain GSF operations and to bring GSF operations into line with court rulings. An industry analyst who has long followed Suntech told reporters that the GSF power plant involved was built during 2010-2011."Two years ago, the Italian market was very hot, and the investment in the power plant was very high." The analyst explained. The investment in Italian power plants has also brought Suntech a lot of revenue. The analyst told reporters that in the 2009-2011, Suntech power to the Italian power plant components sales revenue of up to 300 million U.S. dollars. The analyst believes that the biggest impact of the GSF power station's seizure on Suntech is a further reduction in Suntech's liquidity. Suntech, he believes, had hoped to sell its European power plants in exchange for funds. According to him, the amount of assets involved in the plant is around 120 million dollars. "Of the 37 solar power plants involved, the total installed capacity of about 30MW, if the price of 5 dollars/w, the amount of assets involved is about 150 million dollars." But considering the factor such as component price drop, now calculate with 4 dollar/w price, it is about 120 million dollars. The analyst told reporters. The analyst told reporters that the GSF power plant was the main asset in the remainder of Suntech's production part, the Wuxi Suntech, which accounted for a large proportion of overseas assets. Since the two quarter of this year, as the domestic market has warmed up, the domestic leading PV module manufacturers have produced a gratifying performance report, a number of enterprises to the profit. Under the impetus of a series of policies, the domestic power station market is also accelerated, and the state-owned PV enterprises have quickly seized the market. But none of these events has affected Suntech's performance. The analyst told reporters that Suntech did not have a share in the opening of the domestic power plant market, because investment in the power plant requires a lot of money, and Suntech is the most scarce is the capital. Black Horse to disrupt Suntech restructuring However, the overall recovery of the market, or Wuxi Suntech bankruptcy reorganization of the pattern produced a certain impact. The Wuxi Suntech bankruptcy plan, originally expected to be released on September 20, is now set to be postponed, according to a person close to Wuxi, the reason is that at the last minute, a strategic investor with a dark horse posture appeared, leading to the previous pattern was completely overturned. Prior to that, Wuxi Suntech Bankruptcy reorganization Group has been to the acquisition of Wuxi Suntech Enterprises issued a takeover offer, Yingli Group, Changzhou Trina Solar Energy Co., Ltd., Beijing Putian New Power Technology Development Co., Ltd. and China's electricity group, said the intention to buy Wuxi Suntech, and did a due diligence. These people said that the new strategic investors, different from the above four, but a new investor. "It did not participate in previous offers and due diligence, but in August, suddenly contacted the Wuxi government." The above people told the reporter. And Wuxi Suntech's bankruptcy reorganization pattern has been broken repeatedly, also had to say with the domestic market warmer. With the expansion of the domestic power plant market and the improvement of the performance of photovoltaic enterprises, the industry has the strength of the enterprises have ample cash, but also see the acquisition of Wuxi Suntech capacity of necessity. Therefore, there are new strategic investors to take over the intention of Wuxi Suntech, the reversal of the situation, I am afraid that the Wuxi governmentUnexpected.