Solar shakeout: Banks pull LDK subsidiary Sunways’ credit facilities

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on 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.

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

April 13, 2021
As energy markets continue to adapt and grow, energy arbitrage could overtake frequency markets as a key revenue stream for many co-located solar plus storage projects.
April 13, 2021
US independent power producer Catalyze has expanded its project pipeline to more than 2GW through the acquisition of commercial and industrial (C&I) solar developer PermaCity.
April 13, 2021
Europe’s power networks need to embrace flexibility and whole systems approaches on much larger scales if they are to be capable of accommodating the levels of renewable power necessary to hit 2030 targets.
April 13, 2021
UK based green tech nonprofit Open Climate Fix has been awarded £500,000 in’s Impact Challenge On Climate to develop solar forecasting.
April 13, 2021
Major ‘Solar Module Super League’ (SMSL) member JinkoSolar has guided 2021 total product shipments (wafers, solar cells and modules) to be in the range of 25GW to 30GW.
April 13, 2021
Renewables firm Global Energy Services (GES) has started construction work on three solar projects in Spain with a combined capacity of 131MWp

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET