Sunways: Banks cancel $8.6 million credit

The management board is currently negotiating with banks and creditors to allow the company to continue operating. Originally, the line of credit was set to expire in September 2013, but the banks decided to use their extraordinary right to cancel it early due to the current economic situation of the solar industry and the company, according to a company statement.

In addition, the banks are demanding the liquidation of collateral securities, which were given as security by the debt-ridden company to obtain the loan.

At the same time, the management board said it was negotiating with the banks regarding loan repayment. This way the company would be able to continue operating.

In order to rescue the company from its numerous financial troubles, last March, Sunways further integrated its business with LDK Solar by reorganizing its management and supervisory board. However, Sunways’ future continues to look uncertain. It has postponed its 2012 full-year financial results and will also delay the publication of the statement for the first half of the business year 2013.

As reported last December, the German-based company cut 40% of its 265 strong workforce and said it would focus on solar cells for specialist applications, like BIPV and stop production of solar cells for standard modules "until further notice."

Meanwhile, parent LDK Solar has recorded an enormous Q4 2012 net loss totaling over $0.5 billion; significantly up from the $95.9 million loss seen in the previous quarter. Although the beleaguered Chinese photovoltaic manufacturer is under significant financial pressure, it forecasts Q1 2013 revenues of between $80 million to $100 million.

Nonetheless, a ray of light in the storm came out as LDK Solar announced a shipment agreement worth around 63 MW of photovoltaic modules with Thai solar developer EA Solar Nakornsawan Co., Ltd., according to a report by news agency Bloomberg.