Solar shakeout: Banks pull LDK subsidiary Sunways’ credit facilities

Facebook
Twitter
LinkedIn
Reddit
Email

The future of LDK Solar subsidiary Sunways looks increasingly uncertain after its banks cancelled its €6.6 million line of credit.

The majority-owned subsidiary of struggling LDK Solar had already been issued with “going concern” warnings from its accountants when it reported third quarter 2012 financial results back in November 2012.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Now Sunways has revealed in a statement that the “current economic situation of the photovoltaics industry and of the company” has led to its banks terminating all credit facilities and exercising rights to unspecified collateral provided by the company that had initially secured the credit facilities.

The management board of Sunways said it was continuing to talk with its banks in regard to the repayment of the loan amounts drawn down at the time of the termination in an effort to enable the company to continue operating.

Sunways has postponed reporting full-year financial results. The company last reported third quarter 2012 revenue of €11.5 million, down more than a 50% against the same quarter of 2011. The company had reported an operating loss (EBIT) of €11.2 million. 

Operating losses (EBIT) for the first nine months of 2012 amounted to a negative €24.5 million.

LDK Solar had reshuffled the management board of Sunways to include mainly LDK Solar executives, yet did not discuss any aspects of Sunways' revenue, shipments and financial position in its recent fourth quarter financial conference call. No financial analysts on the call asked questions about Sunways.

Read Next

July 14, 2025
ACWA Power has signed power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) for five solar PV projects in the country.
July 14, 2025
Elements Green has secured €80 million (US$93.5 million) in financing from Danish investment firm Copenhagen Infrastructure Partners (CIP).
July 14, 2025
Solar and storage developer MN8 Energy has raised US$575 million to refinance three PV projects in North Carolina, Kentucky and Illinois.
July 14, 2025
OpenSolar has launched a new model to help US rooftop solar installers reduce costs and thrive despite the loss of the 30% IRA tax credit.
July 14, 2025
Analyst Wood Mackenzie has forecast that solar PV and wind installations in the US will be 100GW lower than expected between 2025 and 2030 with the removal of Inflation Reduction Act (IRA) incentives.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK