LOS ANGELES Oct 9 Chinese solar panel maker
Suntech Power Holdings Co Ltd said on Tuesday it hired
UBS to evaluate alternatives for its convertible notes due in
March of next year.
The announcement comes as Suntech and others in the industry
grapple with a sharp decline in panel prices that has hurt
margins for nearly two years. Panel prices have dropped about 30
percent so far this year after falling 50 percent in 2011.
In a statement, the cash-strapped company said it is
"committed to extending the maturity of credit facilities and
continuing to reduce total debt and related interest expense."
At the end of 2011, Suntech had $580.9 million in
convertible notes outstanding and $492.4 million in cash.
Also on Tuesday, Suntech said it would slash production
capacity, cut non-silicon module costs by 30 percent from the
end of 2011 and reduce operating costs by 20 percent this year.
"I am confident that we can return to positive operating
cash flow in 2013," Chief Executive David King said in the