Taiwan's debt-laden E-Ton Solar seeks $102 mln in private capital
E-Ton Solar Tech Co., a Taiwan-based solar cell maker, said that it is planning to raise up to NT$3 billion (USD102 million) through a private placement in order to repay debts and help fund purchases of raw materials.
According to Horizon Securities analyst Benson Huang E-Ton’s financial situation has become “thornier” after incurring further losses in the first quarter of this year.
According to the Taiwan Stock Exchange, E-Ton had NT$5.46 billion in total debt as of the end of December 2011, including NT$3.58 billion the company will have to repay within one year.
In the first quarter, E-Ton incurred NT$355 million in net losses, or NT$0.74 in loss per share, extending from NT$4.05 billion in net losses for the whole of 2011, amid increasingly fiercer competition in the world's solar energy market.
"E-Ton has incurred large losses for three years in a row. I see little possibility that the company will have a turnaround this year under such unfavorable circumstances," Huang said.