A Chinese solar panel maker, Suntech Power Holdings, already under pressure from the collapse in the price of its products, said an internal investigation had determined that the company was defrauded by a partner in a solar development fund. As a result, Suntech will reduce its 2010 net income by $60 million to $80 million, it said. The accusation involves a Luxembourg investment fund, GSF Sicar, a solar power plant developer that is 80 percent owned by Suntech and 10 percent by Zhengrong Shi, who founded Suntech in 2001. The accusation relates to a minority shareholder, GSF Capital PTE, which owns the remaining 10 percent of the fund. Suntech, which plans to file restated consolidated results in early 2013, said it had concluded that a security interest it received from GSF Capital to finance Italian solar projects did not exist. It said in August that the 560 million euro ($727 million) security was in the form of German bonds. Suntech is also weighing alternatives to cover a $541 million convertible bond due in 2013. Suntech is grappling with a global glut of solar panels that has sent prices into a tailspin. The company also said revenue fell 18 percent in the third quarter from the second because subsidies were cut in Europe, a top solar market. Shipments of photovoltaic solar panels are expected to be lower than planned. Suntech also said that its results for 2011 and the first quarter of 2012 should not be relied on, although the impact was expected to be immaterial. The Chinese solar panel industry received a vote of confidence, too, on Friday, when a Suntech rival, JinkoSolar Holding, said its Swiss unit would get up to $1 billion over five years from the China Development Bank Corporation to provide money for projects outside China.
Business Briefing | Fraud: Fraud Accusation by Solar Panel Maker
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Business Briefing | Fraud: Fraud Accusation by Solar Panel Maker
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Business Briefing | Fraud: Fraud Accusation by Solar Panel Maker
