SQN Capital Management, the managers of the London Stock Exchange (LSE) listed SQN Asset Finance Income Fund, said it is on course to recover a $29.9m (£22.1) investment loss it had recently been exposed to through solar panel maunfacturer Suniva.

In 2015, SQN entered a 5-year financing agreement with the US-based manufacturer. However, Suniva filed for bankruptcy protection last April, following what SQN called “an unprecedented decline in the market price of solar cells and modules caused by an excess of foreign imports in circumvention of existing anti-dumping tariffs and WTO rules”. Suniva’s bankruptcy would have left SQN exposed for 6.8% of ordinary shares’ net assets.

Last Friday, however, the US International Trade Commission (ITC) found that “substantial damage has been caused to the U.S. solar manufacturing industry by the overcapacity of foreign imports”. Consequently, on November 13 it will make a recommendation to the White House regarding reparations for US solar panel producers like Suniva.

Should Suniva be granted the remedies it argued for, SQN said the funds’s operations will turn profitable again in early 2018.

SQN’s share price on the LSE rose 3% since Friday, and now stands at 100.98p per share.

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