STP debt maturity in 9 days, board without plan

The maturity date of Suntech’s $541 million in convertible bonds is getting very close and it seems that the company is heading straight for bankruptcy. Shi Zhengrong, who was ousted as chairman this week, said that the board has no solution to handle the debt maturity. With the maturity in 9 days there is definitely not enough time to organize a debt for equity swap, so bankruptcy is the only option if there is no miracle bailout. Despite this the market cap of the equity is still more than $200 million while the bonds are trading at 37% of par…

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Short STP

2 thoughts on “STP debt maturity in 9 days, board without plan

    1. Alpha Vulture Post author

      That’s the great thing about my short: I’m not short the shares, but long a structured product called a mini short certificate (not for sale anymore – someone at RBS must have woken up). So I don’t have to worry about finding a locate and I’m also not paying a borrow fee :).

      Reply

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