Caymans Court accepts Suntech’s liquidation filing

Nov 11, 2013 - Chinese group Suntech Power Holdings Co Ltd (NYSE:STP) said Saturday that its application for provisional liquidation had been accepted by the Grand Court of the Cayman Islands.

PricewaterhouseCoopers restructuring professionals will now collaborate with the photovoltaics (PV) maker’s managing board to “continue progressing a restructuring of the company.” The professionals will start working with Suntech immediately with the aim of restructuring the group in the best interest of all stakeholders, it said.

The Chinese company submitted its application last week, saying it might also seek Chapter 15 protection in the US. With the application, Suntech sought a certain level of protection and more time to finalise its restructuring efforts. The firm also said it had already arrived at an understanding with a group of creditors that envisages the exchange of debt for equity. The company also intends to find a new strategic investor to provide financial support in order to wrap up the restructuring process.

In mid-March 2013, Suntech failed to make the principal payment on a USD-541-million (EUR 405m) bond, touted as the first bond default for a China-based company. A few days later Wuxi Suntech, the firm’s principal unit in China, entered insolvency proceedings and restructuring. Chinese peer Shunfeng Photovoltaic International Ltd (HKG:1165) in late October agreed to buy that subsidiary for CNY 3 billion (USD 491m/EUR 368m).

(CNY 1.0 = USD 0.164/EUR 0.123)

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