Companies report bad debts due to Suntech bankruptcy
By Xie Yu | chinadaily.com.cn | Updated: 2013-04-01 16:06
Five listed companies in China have reported bad debts amounting to 426 million yuan ($68.7 million) due to the bankruptcy of Suntech Power Holdings Co Ltd, the former biggest solar equipment maker in the world, the Beijing Business Today reported on Monday.
Tianjin Zhonghuan Semiconductor Co Ltd was the hardest hit. The company said last Sunday it had 176 million yuan in unpaid receivables from Suntech, causing losses of 90.38 million yuan compared with a net profit of 6.24 million yuan.
Xi'an-based Longi Silicon Materials Corp also announced a revised forecast for its financial results recently. It said it expected a 54 million yuan loss for 2012, due to bad debts caused by the unpaid receivables from Suntech.
Changzhou Almaden Co Ltd sued Suntech late last year for default and won a ruling to recover 60 million yuan in February.
Lawyers said Suntech will work out a debt settlement program after going bankrupt, and that creditors will get some compensation according to a certain ratio.
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