Suntech Takes A $25 Million Charge

Suntech Power (STP) is increasing the size of its impairment charge for Q4 2008 from $48.8 million to $73.8 million, which will result in an after tax hit of $22.8 million to Suntech’s net income for 2008.

The additional $25 million charge comes from an investment in Nitol Solar, a polysilicon manufacturer. Suntech owned 14% of the company’s equity at the end of 2008, though that stake is just 11.9% now due to dilution from Nitol restructuring its debt to build a new facility.

The updated impairment comes about because Suntech learned “new material information related to fixed asset impairments and losses on financial instruments” for Nitol Solar and had to reassess its loss from the company.

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