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Suntech Power Holdings Co., Ltd. (ADR) (STP) on the Brink of Bankruptcy? – Yingli Green Energy Hold. Co. Ltd. (ADR) (YGE), LDK Solar Co., Ltd (ADR) (LDK)

A Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) failure would be good for everyone else
If Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) goes down it would really be good for everyone else in the industry. Solar is oversupplied right now and Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) would take 2 GW of that supply off the market. I think U.S. solar companies would benefit the most but there would be winners in China as well.

JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) and JinkoSolar Holding Co., Ltd. (NYSE:JKS) have two of the better balance sheets, and they could pick up some of the slack. Trina Solar would also be able to fill in, and with a bigger brand name than JA or Jinko it could experience expanding margins.

Foolish bottom line
This is exactly what the solar industry needs, even if solar stocks aren’t reacting that way today. Keep an eye on Suntech’s developments over the next few days to see if it evades this somehow, or if bondholders try to force the company into bankruptcy. It’ll be a fascinating fight to watch.

The article Suntech Power on the Brink of Bankruptcy? originally appeared on

Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned.

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