Trina Solar $ 14 billion of liabilities pressure top that will not go bankrupt
- On 15/01/2013
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The newspaper reported that nearly thirty percent of Jiangsu PV industry overall decline, the same day, Jiangsu Changzhou Trina Solar (NYSE: TSL) because more than 14 billion U.S. dollars in off-balance sheet liabilities into a whirlpool of public opinion.
According to public reports, a few days ago, a former investment banker named RichardPearson issued a document that, in order to repay maturing debt, Trina solar inverter is sell their products at below cost price, which will make the cash situation this is not optimistic Trina Solar to face the risk of delisting. And within the next few weeks and months, Trina Solar to repay $ 800 million of debt, the company also bear the $ 14 billion in off-balance sheet liabilities. , Trina released a statement responded that, in the global PV industry average gross profit for the negative situation, the gross profit margin in 2012, Trina Solar remains positive, the future is expected to continue to improve operating cash flow will continue to improve, company absolutely projected to the outside world fails to repay the bankruptcy.
Accused facing six risk
Recently, the American investment bankers issued a document that, in order to repay maturing debt, Trina Solar is selling products below cost price, and will make cash situation this optimistic Trina Solar is facing delisting risk. Within the next few weeks and months, Trina Solar to repay $ 800 million of debt, the company also bear the $ 14 billion in off-balance sheet liabilities.
The above article also listed Trina solar panel is currently facing six risk Trina Solar's total liabilities of $ 1.9 billion, but it has more than 14 billion U.S. dollars in off-balance sheet liabilities; second is these additional liabilities Trina energy prices to historical purchase polysilicon products; 3 will have a maturity of $ 800 million of debt, but is currently in the hands of insufficient cash flow; four products below cost sales, the balance of the company's cash flow fell sharply; five operators negative gross margins will continue; six major markets in Europe and the United States, but the two areas are facing high punitive tariffs.
In addition to these risks, according to Trina Solar last three quarterly show, as of September last year, Trina Solar's short-term liabilities of $ 778 million, while cash and cash equivalents of the company over the same period is less than six hundred million U.S. dollars. At this point, Trina Solar's total liabilities reached $ 1.89 billion, of which $ 1.376 billion as current liabilities.
In terms of revenue, Trina Solar has been showing a continuous decline in four quarters situation, fell to $ 290 million in the third quarter of 2012 from $ 480 million in the third quarter of 2011.
In order to pay its debts as they fall due, the company only to low-profit or even negative profits to sell their products, which is the edge of the key factors of the company into bankruptcy.
The company said sustainable development grid tie inverter
Trina Solar said in a statement, in the current industry environment, the company's financial position, operating conditions, and the ability to resist risks has been leading level, there is no prediction fails to repay and bankruptcy.
For over $ 14 billion of off-balance sheet liabilities, Trina Solar, responded that the negative situation in the global PV industry average gross profit, gross profit margin in 2012, Trina Solar remains positive, the future is expected to continue to improve operating cash flow will also continue to improve. And the company has developed a clear plan and goals, as soon as possible and strive to reduce inventory turnover days and receivables carried period, to ensure that the company operate more healthy.
Addition, Trina Solar further responded that, the subordinates in PricewaterhouseCoopers PRTM's 2012 global solar industry Sustainability Index, Trina ranked second in the world, this is the company for three years in this The list ranked the world's first two. The index from the company's market share, the company's profitability and capital chain index to measure the overall strength of the company, to see are based on the data and the results of the fixed target, reflects the company's capacity for sustainable development. Trina Solar be well prepared for the difficulties and challenges faced by the industry and the ability to respond effectively, and will continue to achieve the sustained and healthy development through mutually beneficial cooperation with all parties.