Shunfeng says no Wuxi deal approved by Suntech liquidators

Nov 15, 2013 - Shunfeng Photovoltaic International Ltd (HKG:1165) said Thursday it had been informed that the liquidators of Suntech Power Holdings Co (NYSE:STP) have not approved any acquisition deals related to Wuxi Suntech Power Holdings.

Just a few days ago Shunfeng received news that its plan to buy for CNY 3 billion (USD 492m/EUR 366m) Wuxi Suntech -- the principal major unit in China of photovoltaics (PV) maker Suntech -- had been approved at creditors’ and equity interests holder’s meetings on November 12. However, two representatives of PricewaterhouseCoopers, appointed by a Cayman Islands court as provisional liquidators for the parent company, have now notified Shunfeng that they had not given their consent to “any transfer or disposal of the equity interests of Wuxi Suntech to the Jiangsu Shunfeng or any other company or entity.”

The liquidators will also investigate Suntech’s right regarding the transfers and disposals of shares in Suntech Power Japan Corp and Suntech Power Investment Pte to Wuxi Suntech, which were completed as part of Suntech's restructuring. The liquidators believe that the "transfers may be voidable under the British Virgin Islands law." Shunfeng noted that the transfers in question had been completed while Wuxi Suntech was under administration with an administrator appointed by the Wuxi Intermediate People’s Court. "The company believes that any objection of the joint provisional liquidators over the restructuring of Wuxi Suntech should instead be raised to the administrator or the Wuxi Intermediate People’s Court," Shunfeng said

Wuxi Suntech entered insolvency proceedings and restructuring in March, soon after its parent failed to make the principal payment on a USD-541-million (EUR 402m) bond. Earlier this month Suntech’s application for provisional liquidation was accepted by the Grand Court of the Cayman Islands.

(CNY 1.0 = USD 0.164/EUR 0.122)
(USD 1.0 = EUR 0.743)

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