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Suntech's bankruptcy causing problems for others

Updated: 2013-03-27 19:52

The bankruptcy of Suntech, the former largest solar panel maker in the world, is causing problems in other upstream and downstream companies in the solar sector, the Shanghai Securities Journal reported on Wednesday.

Xi'an-based Longi Silicon Materials Corp announced a revised forecast for financial results last Saturday. It now expects a 54 million yuan ($8.7 million) loss for 2012, due to bad debts caused by unpaid receivables from Suntech.

In late January, the company's earnings pre-announcement said it expected a profit of 10 to 25 million yuan.

The lead underwriter for Longi Silicon Materials' listing, Guosen Securities, may also face a punishment from the China Securities Regulatory Commission, after Longi reported losses during the first year after it went public.