Suntech Power Holdings Co. Ltd. (NYSE: STP) sounds doomed. The damage sets a sour tone for the week’s solar lineup as First Solar Inc. (NASDAQ: FSLR) is set to report earnings this week. Suntech said that it is investigating security interest in connection with its investment in the Global Solar Fund.
Based on recent reviews and inquiries, Suntech now says that it suspects that the collateral related to the security interest may never have existed. In short, the company may have been a victim of a serious fraud.
Suntech guaranteed payment obligations related to finance facilities provided to an investee company of GSF back in May of 2010 in the amount of over 550 million euros. As security for the company’s obligations under the guarantee, Suntech received a pledge of German government bonds in the amount of 560.0 million euros from GSF Capital, which was a third-party investor of GSF.
Suntech said, “While we continue to investigate and take actions to resolve this matter, Suntech’s daily operations will not be impacted.” Still shares are down 14% at $1.35 in the premarket against a prior 52-week range of $1.50 to $7.77.
Solar companies already are having a hard time of things. Fraud in investments is just one more fly in the ointment.
JON C. OGG
The Average American Is Losing Momentum on Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%* today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying nearly 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.