Strategic investors are trying to make up for the fact that Wuxi Suntech is accelerating the "fate of fate." The news from the Bankruptcy and Reorganization Manager Group stated that Wuxi Suntech’s clearing of nuclear assets has basically come to an end, and it has entered the stage of selecting strategic investors since July.

Although Wuxi Suntech, with its total assets of nearly 20 billion yuan, has shrunk dramatically, it is like an elephant full of crises. It is not easy for three counterparts and a central SOE to submit a Letter of Intent. At present, there is a fierce battle between the four companies and the Wuxi government and Suntech in terms of who will take over.

Liquidation of 10.7 billion yuan in debt On August 13th, Suntech Power (STP.NYSE) received a number of consecutive 30 trading days and its average price was higher than US$1. City warning. One day later, the Wuxi Municipal Government Information Office announced that the Wuxi Suntech liquidation fund had been landed and entered the strategic investors selection stage in July.

The Wuxi Municipal Party Committee executives also passed a signal not allowing Wuxi Suntech to go bankrupt. “Suntech reorganization is proceeding in an orderly manner according to the marketization plan. Wuxi hopes to retain Suntech's brand, technology and overseas markets through the reorganization, and will The entire industrial chain from production to power station construction has opened up."

But if Suntech wins the "Luxurious King", will Suntech split into two? “Wuxi Suntech is the core asset and a wholly-owned subsidiary of Suntech Power, a listed company. The bankruptcy reorganization and 'to be married' is Wuxi Suntech and not Suntech Power,” said Renhao Ning, a research fellow in the Chinese PV industry, reporting to this reporter. Said, "Once Suntech Wuxi really married, will have a great impact on Suntech Power, and there is a possibility of splitting into two."

The data shows that as of the end of 2011, the total assets of Suntech Power were 28.3 billion yuan, and Suntech was 19.769 billion yuan, accounting for about 70% of the listed companies.

What attracts people's attention is that of the total debt of 28.3 billion yuan at the end of 2011, which was exposed by Suntech Power, most of them come from Suntech. Since Suntech Wuxi was declared bankrupt and reformed on March 20 this year, the debt declared by Wuxi Suntech alone would have reached 17.4 billion yuan. Fortunately, the bankruptcy and reorganization management representative Yang Erguan introduced that Wuxi Sunde currently owes banks, suppliers and guarantors about 10.7 billion yuan in debt, which is 6.7 billion yuan less than the 17.4 billion yuan declared at that time. However, the previous 5.4 billion U.S. dollar convertible bonds on Suntech Power had a deferred final date of August 30 this year, which is not far behind.

The reporter learned from Wuxi officials that the conditions for Suntech's purchasers to meet are: total assets not less than RMB 5 billion, net assets not less than RMB 2 billion, registered capital not less than RMB 100 million, and available funds not less than RMB At the same time, it is required to have 50 million yuan in operating and management experience in the photovoltaic industry and to accept investors to form a consortium to participate in investment.

In June, the manager publicly recruited strategic investors by sending letters. In July, the bankruptcy reorganization management team began intense negotiations with strategic investors and contacted five companies in the first round, of which three were private enterprises and two state-owned enterprises, and the second round was determined as four. At present, strategic investors are conducting due diligence on Suntech.

“In the past, many companies wanted to make partial acquisitions and acquired M&A for Suntech's subsidiary, but Wuxi did not agree.” The above-mentioned PV person who knew the inside story told this reporter.

It is understood that among the investors selected in the second round are Yingli Group, Changzhou Tianhe Solar Energy Co., Ltd., Beijing Putian New Energy Technology Development Co., Ltd., and China West Electric (3.45, -0.07, -1.99%) Group. Four companies.

The high-level Yingli Group insiders told the China Times reporter: “We have this intention (acquisition of Suntech, Wuxi), but it is still at the initial stage of the investigation stage, and taking over or not is not yet a suitable time for publication.” and others The three companies all expressed to the reporter that "it is not convenient to disclose the situation."

In the process of Wuxi Suntech being sold for price, the shadow of the Wuxi municipal government can be seen everywhere. As early as the end of March, the Wuxi municipal government had found the only qualified photovoltaic company in the province, GCL-Poly, to take over. However, due to its own losses, it lost more than 330 million yuan in the first half of the year and it failed to reach a conclusion. Even the Wuxi municipal government had found the Jiangsu Shagang Group and other enterprises leading the private enterprises in the province to talk about the pick-up, but in the end it failed.

Renhao Ning told this reporter that investors are concerned that Wuxi Suntech can take over hundreds of billions of yuan of debt, and although the national policy is currently favorable, if any changes to the policy later take over, Suntech will become a big trouble.

The considerations of the takers The answer to the fate of Suntech Wuxi is accelerating. Before this year's December 20th, it was unable to propose a reorganization plan, or the deterioration of business conditions, transfer of assets, etc. Wuxi Suntech will be declared bankrupt. Now is the time passed. Mostly.

Previously, most of the arguments of the ** were locked in by the Wuxi Guolian Group (hereinafter referred to as the Wuxi League of Nations) under the state-owned platform of the Wuxi Municipal Government. Zhou Weiping, who has the background of the League of Nations, took over as the executive president of the Suntech Wuxi. Guess.

“The Wuxi government is looking for investors everywhere. It makes people see Wuxi’s joining hands be a helpless move,” Ren Haoning said. “At present, China’s local bonds are high, and Wuxi is no exception. More than 10 billion debts are not small, plus The bank almost no longer provides the photovoltaic industry with **, it is best to take over the new energy state-owned enterprises or central enterprises, followed by the strength of private enterprises.”

Ying Li being investigated is most likely to be analyzed by the outside world as the possibility of an order. However, in Ren Haoning's view, “the possibility of the four companies getting access to the market is not large, the industry is in surplus, and the operating conditions of the enterprises are not optimistic. Last year’s huge losses were still losing money this year. If they are connected to such a big stall, they will Billion debt will be very challenging."

The only central enterprise among the four companies, China Xidian’s performance in the first half of the year shows that it expects to turn a profit in the first half of the year, with a profit of approximately RMB 160 million, and a loss of RMB 155 million in the same period of last year.

Yingli believes that it is more important to seize market share when the industry encounters difficulties. However, of the 47 profit-losing companies in the top 500 Chinese enterprises released in mid-September 2013, Yingli ranked fourth with a net loss of 5.588 billion yuan, making it the most loss-making enterprise in the list of PV companies.

Trina Solar is not optimistic about the situation. In the first quarter of this year, its cash and cash equivalents were 704 million U.S. dollars, down from 807 million U.S. dollars at the end of last year. At the same time, the company's cash flow rate was the last of the 10 U.S. listed companies (0.34). The highest turnover rate of Jinko Energy (2.72) is quite different. In addition, at that time, the asset-liability ratio of Trina Solar was 70%. It was assumed that Suntech's debt-taking Wuxi Suntech would have unimaginably high debt-to-equity ratios. However, Beijing Putian New Energy Company seems to be more difficult to "swamp the elephant".

However, companies may be looking for debt relief or more favorable policies. Whether the Wuxi municipal government's proposal for debt relief or giving other preferential policies to the reporter, the high-level insiders of Yingli told this reporter that various possibilities will occur.

The reporter was informed that there was an early news weigh-and-sew plan that also included some “supporting preferential policies” provided by the government. If a certain enterprise received an order, the government would promise to provide corresponding help, “such as waiver of interest, such as assets. * When the government came forward to guarantee or the government came forward to look for a guarantee company guarantee, etc.

What is the fate of Suntech in Wuxi?

Ren Haoning suggested that the Wuxi government and Wuxi Suntech may consider lowering the demand, reducing debts or granting attractive preferential policies, so as to avoid the embarrassing situation caused by the Wuxi National League.

The shadow of Wuxi's government everywhere in Wuxi Suntech was accused by the industry of accepting orders or being a "Lang-Lang match," worrying that the government’s visible hand once again harmed Suntech.