Is Suntech just the beginning?

The New York Times reports that Chinese solar maker Suntech has collapsed into bankruptcy and is due to be taken over by the holding company for the municipal government of Wuxi, China.  Suntech follows a similar storyline to many solar makers in that it found itself trying to compete in a global market of declining panel prices.
But the Chinese solar makers have been better off when compared to U.S. and European solar players like Solyndra, Q-Cells and Abound Solar. Part of that reason has been the extensive credit and loans Chinese municipalities have extended along with the China Development bank to keep the companies going. The Chinese government has also supported the market by raising renewable energy targets in the country.
But how long could it go on before even the government tired of financing companies that were losing money? Suntech was an easy company to let fail because it had gotten itself involved in a financing scheme involving German bonds, that it turns out might be fraudulent. Suntech had $541 million due to the holders of those convertible bonds last week.
It’s been reported that credit is tightening across the board in the Chinese solar industry, ranging from the central banks to solar makers’s customers, who are being asked to pay cash on delivery. If we see a further collapse in the Chinese solar industry, we may even see the unthinkable: a stabilization of panel prices.