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SunEdison’s bankruptcy could incinerate $20.9 million owed to Chinese suppliers JA Solar ( JASO ) and Trina Solar ( TSL ), Credit Suisse analyst Patrick Jobin noted Monday, as the U.S. Bankruptcy Court granted SunEd some relief. Under SunEd’s Chapter 11 bankruptcy , filed Thursday, the solar developer will be allowed to pay employees wages and benefits, work on continuing projects and make “certain vendor payments,” SunEd said in a press release. But the ruling doesn’t specify whether SunEdison will make payments on about $322 million owed to trade suppliers, ranging from polysilicon production to cell/module suppliers. In total, SunEdison owed $11.7 billion as of Sept. 30, the company’s last financial filing. JA Solar and Trina Solar are among SunEd’s suppliers of solar cells and solar modules. SunEdison owes the duo $10.4 million and $10.5 million, respectively, Jobin wrote in a research report. “These are not trivial amounts, potentially impacting full-year earnings 6.6%-11.8% in a ‘worst case’ scenario of not receiving payments,” he wrote. He estimated Trina Solar’s earnings per share could drop nearly 9 cents to 32 cents from 41 cents, and JA Solar could lose 18 cents on its earnings, falling to 43 cents from 61 cents. JA Solar and Trina Solar stocks split Monday on Wall Street. JA Solar stock closed up a fraction, with Trina Solar stock slipping a fraction. Scalper1 News
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