Suntech in cut-price module sale

China's Suntech will sell a 99% stake in a project company and 29.7MW of its modules at a cut-price rate to Shunfeng Photovoltaic International.

The sale will bring in a total of 93m yuan ($15.2m) to the stricken Chinese PV giant, raising cash as part of its restructuring efforts.

Shunfeng, based in eastern China’s Jiangsu province, will buy the modules in stages for 89m yuan, it said in a filing to the Hong Kong Stock Exchange.

It will pay $0.49 per watt for the panels, down from the average price this week of $0.72, according to data from Bloomberg.

It will install the modules at a site near Kumul, a city east of Urumqi, the capital of western China’s Xinjiang Uyghur Autonomous Region, via the company it is purchasing from Suntech.

Suntech, which defaulted on $541m worth of bonds in March and has seen its main Chinese operating subsidiary enter administration, needs cash and has been looking to sell off assets as part of its efforts turn itself around.

Last week it said that a “majority” of its bondholders had agreed to defer repayment until 28 June.