January 31, 2023

Suntech signs agreement over noteholder lawsuit

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SuntechBY:  MAX HALL From PV Magazine

U.S. noteholders have secured a pledge to have their obligations treated on an equal footing with non-U.S. creditors. Suntech can now continue with Cayman Islands liquidation proceedings.

Suntech has signed an agreement with U.S.-based holders of its notes to stay their petition for involuntary bankruptcy.


Former solar giant Suntech Power Holdings has signed an agreement with the U.S.-based holders of unpaid convertible notes in the company whom had petitioned for Suntech to be placed in involuntary bankruptcy.

U.S. investors with notes amounting to $1.6 million, due at the end of 2013, had filed a petition under Chapter 7 of the U.S. bankruptcy code in the southern district court of New York.

Suntech Power Holdings – the rump of former PV world leader Suntech after the sale of the Chinese Wuxi Suntech manufacturing business to Shunfeng Photovoltaic International – announced on Friday it has signed an agreement to dismiss the Chapter 7 filing after negotiations with the petitioners.

Under the terms of the restructuring support agreement, the filing will be dismissed in return for the notes held by the petitioners being treated on an equal footing with Suntech’s other, mostly Chinese, creditors and with Suntech dropping its appeal against a judgement relating to settlement of the notes, secured by the petitioners in September.

The agreement means the provisional liquidators of the Chinese-owned but Cayman Islands-registered company can proceed with a restructuring in line with the provisional liquidation proceeding filed in its Caribbean base under Chapter 15 of the U.S. bankruptcy code.

The agreement can be torn up, however, if Suntech fails to file its Chapter 15 petition by February 21, an order obtaining recognition of the Cayman Islands restructuring is not entered by the U.S. Bankruptcy Court by May 31 or the Cayman Islands restructuring is not approved by December 31.

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Related story:

Suntech Power Holdings proceeds with restructuring under chapter 15

From PV Tech

Suntech Power Holdings said that it gained agreement from certain bondholders at a meeting arranged by its joint provisional liquidators in the Cayman Islands around a Restructuring Support Agreement (RSA).

Bankruptcy winding-up proceedings by a small group of Suntech Power Holdings’ disgruntled bondholders under US chapter 7 rules could be dismissed in the New York courts and reinstated under chapter 15 rules should Suntech’s latest petition be accepted.

Suntech Power Holdings said that it gained agreement from certain bondholders at a meeting arranged by its joint provisional liquidators (JPLs) in the Cayman Islands around a Restructuring Support Agreement (RSA).

The chapter 15 petition, according to the RSA would need to be presented to the US courts by February 21, 2014.

David Walker, one of the court appointed JPLs, said: “We are pleased to have been able to work with all parties to bring this agreement to fruition. Finding common ground and alignment among each of the company, its large creditors, its small creditors, and ourselves as the court appointed restructuring professionals represents tremendous progress. This agreement hopefully allows us to continue to proceed with the company’s Cayman Islands restructuring to preserve value in the interests of all stakeholders.”

Suntech Power Holdings’ manufacturing operations in China have already been sold to Shunfeng Photovoltaics via courts in Wuxi, China. It remians unclear what total assets the firm may have that could see the company able to restructure operations under chapter 15 proceedings, without a major ‘haircut’ taken by bondholders.

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See also iNews Cayman related stories:

Published January 28 2014 “Liquidated Suntech appoints new CFO” at: https://www.ieyenews.com/wordpress/liquidated-suntech-appoints-new-cfo/

Published January 8 2014 “Court documents show Suntech Power shares almost worthless” at: https://www.ieyenews.com/wordpress/court-documents-show-suntech-power-shares-almost-worthless/

The above link shows all the other links to the Suntech related stories on iNews Cayman.

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