Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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.com.

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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.