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

December 5, 2024
Nir served as the company’s chief marketing executive since June 2024 and will succeed Ronen Faier, who served as interim CEO of the company since August 2024.
December 5, 2024
The European Commission has launched a €3.4 billion call to support the development of “innovative decarbonisation technologies in Europe".
December 5, 2024
TotalEnergies has sold a 50% stake in a 2GW US solar and energy storage portfolio and acquired German renewable energy developer VSB Group.
Premium
December 5, 2024
Magdalena Hilgner of PLAY explains that projects that deliver power reliably and at a fair price will always be attractive for offtakers.
December 5, 2024
Australian energy company APA Group has completed the construction of a 45MW solar-plus-storage project in the Pilbara region of Western Australia.
December 4, 2024
Solar will form the cornerstone of Indonesia’s renewable power sector, according to forecasts made by think tank Ember Climate.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 12, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 26, 2025
Seattle, USA