* Resigning directors say advice has not been followed
* Also cite concerns about lack of business plan
* Suntech main unit filed for bankruptcy protection in March
* Parent company defaulted on a $541 mln covertible bond
HONG KONG, Aug 28 Chinese solar panel maker
Suntech Power Holdings Co Ltd said on Wednesday three
directors had resigned due to concerns about a "severe cash flow
drain" and the company's failure to implement their advice.
Hit by a global glut in solar panels, Suntech Power's main
subsidiary, Wuxi Suntech, filed for bankruptcy protection in
China in March, five days after its New York-listed parent
company defaulted on a $541 million convertible bond.
Suntech said Susan Wang, Julian Worley, and Zhizhong Qiu
resigned as directors on Aug. 21, also noting that they felt
they were not being provided with enough information to fulfill
Other concerns cited by the departing directors included
unclear prospects for securing new capital, lack of a clear
business plan, loss of critical talent and failure to pay
outside legal counsel.
Industry watchers have said Suntech's overseas creditors are
only expected to recover a fraction of their capital at best.
A source familiar with the matter told Reuters this month
that the Wuxi unit was in talks with five companies about
strategic investments as part of efforts to restructure its
$1.75 billion debt.
Suntech Power has been operating at 30-40 percent its
designed annual capacity of 2.4 gigawatts (GW), but expects
demand to pick up gradually as China has settled a solar panel
trade dispute with the European Union and has announced plans to
boost domestic demand for solar modules, the source said.
At the end of March 2012, Suntech Power had total debt of
$2.2 billion, including the convertible bond, loans from China
Development Bank, and a $50 million convertible loan from the
International Finance Corporation, the private sector arm of the
It has yet to publish its 2012 annual report and disclose
its overall debt situation.