Suniva files for bankruptcy
Post date: 20/04/2017 - 19:53
US cell and module manufacturer Suniva Inc. has filed for Chapter 11 bankruptcy protection in the United States, announced Chinese Shunfeng International Clean Energy Limited. The company is Suniva’s main shareholder with 63.13 percent equity interest.
As disclosed in the announcement of the company in March, the competition of the solar product market has become fierce in the United States and the business of Suniva has been severely impacted due to the continuous import of solar modules from other photovoltaic manufacturers in southeast Asia at a decreasing cost. At the end of March, Suniva announced a significant reduction in work force, at both its Norcross, Georgia and Saginaw, Michigan facilities, affecting employees in all areas of company operations. In December 2016 Suniva celebrated the completion of its manufacturing expansion in Norcross, which increased the manufacturing capacity to 450 MW.
According to Shunfeng, Suniva recorded a loss for the financial year ended 31 December 2016. The group has recognized an impairment loss of approximately RMB 259 million on the group’s investment in Suniva and a provision of approximately RMB 228 million in relation to certain potential financial liabilities of Suniva for the financial year ended 31 December 2016.