Lumbered with debt and looming repayments on convertible notes valued at around US$540 million and due in March 2013, Suntech Power Holdings has employed UBS Investment Bank to find alternative ways to avoid defaulting on the buyback.
The company made the announcement as part of a statement over its strategy to remain the market leader in the solar industry.
At the end of the first quarter of 2012, Suntech had short-term bank borrowings of US$1.55 billion but had short-term credit facilities valued at US$3.9 billion, of which US$1.75 billion had been drawn down.
The company also reiterated its previously announced plan to cut solar cell production to better improve factory utilization rates as part of its cost cutting exercise. Suntech said that it was targeting a PV module non-silicon cost structure of approximately US$0.55 per watt by the end of 2012, a 30% reduction from the end of 2011.
Although providing few details, the company also affirmed it was continuing to streamline its operations and was on track to achieve a 20% reduction in annualized operating expenses in 2012.
“By continuing to invest in Suntech's technology and customer-service, right-size production capacity, drive down cost, streamline our operating structure and improve our financial position, we aim to return to a sustainable and profitable business model,” said Suntech's CEO, David King.