Suntech seeks bankruptcy protection in US

Feb 24, 2014 - Chinese solar group Suntech Power Holdings Co Ltd (OTCMKTS:STPFQ) has filed for Chapter 15 bankruptcy protection from US creditors as part of its liquidation in the Cayman Islands.

In a statement on Saturday, the company said that its joint provisional liquidators, appointed by the Grand Court of the Cayman Islands, had filed the Chapter 15 petition at the federal court in the Southern District of New York. The move follows a restructuring agreement with some of the firm’s bondholders from earlier this month. These very noteholders previously demanded that the photovoltaics (PV) maker enters involuntary bankruptcy under Chapter 7.

According to David Walker, one of the joint provisional liquidators, Chapter 15 will “allow a centralised process to assert and resolve claims against the Company, and to make distributions to the Company's creditors."

In mid-March 2013, Suntech failed to make the principal payment on a USD-541-million (EUR 394m) 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 492m/EUR 358m).

(CNY 1.0 = USD 0.164/EUR 0.119)

(USD 1.0 = EUR 0.728)

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