From theflyonthewall

Suntech Power Holdings announced that the Grand Court of the Cayman Islands, the jurisdiction of its incorporation, has granted the company’s application for a provisional liquidation. Restructuring professionals selected by the company from PricewaterhouseCoopers have been appointed to work with the company’s board to continue progressing a restructuring of the company.

The restructuring professionals will be appointed with the consent and support of the company and the board with the ultimate goal of achieving the company’s restructuring in the best interest of all stakeholders. The restructuring professionals will commence working with the company immediately.

For more on this story go to: http://www.theflyonthewall.com/permalinks/entry.php/STPid1917343/STP-Suntech-gets-approval-for-a-provisional-liquidation-from-Cayman-Islands

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A fading Suntech

By Swetha Gopinath & Tanya Agrawal From Business Spectator

China’s Suntech Power Holdings Co Ltd, once the world’s largest maker of solar panels, filed for provisional liquidation, signaling that it may go out of business after years of steep declines in panel prices.

Suntech’s shares fell as much as 23 percent to $US1.15 on the New York Stock Exchange on Wednesday last week.

“We do think this is the end for Suntech,” Raymond James analyst Ryan Berney told Reuters.

Suntech filed for provisional liquidation in the Cayman Islands, where it is incorporated.

A provisional liquidation is an emergency procedure that a company can apply for only after a petition to wind up has been presented at court.

Suntech also said it would consider pursuing a Chapter 15 filing in the United States that would allow US courts to recognise a foreign bankruptcy as the main proceeding and block creditors from seizing US assets.

A group of Suntech creditors in the United States filed a Chapter 7 involuntary bankruptcy petition against the company in October. Suntech has said it will contest the attempt to wind up the company.

In a Chapter 7 bankruptcy, a trustee is appointed to oversee the sale of assets to raise money to repay creditors.

“The idea is to reach a deal through the Cayman proceedings and (Suntech) would try to enforce that in the US through a Chapter 15 and use that to dismiss the involuntary bankruptcy,” said Ken Coleman, a partner at law firm Allen & Overy LLP.

Coleman is not involved in the Suntech case.

Suntech’s stock was trading around $US86 nearly six years ago, before the prolonged downturn in the solar industry.

Rapid capacity expansion by Chinese manufacturers from around 2008 created a global glut of panels just as countries in Europe, traditionally the largest solar market, withdrew subsidies to consumers. The subsequent fall in prices forced many producers to shutter production.

Manufacturing shutdown

China’s Shunfeng Photovoltaic International Ltd agreed last week to buy Suntech’s main manufacturing unit, Wuxi Suntech, for $US492 million, leaving Suntech with few assets.

Wuxi Suntech was dragged into bankruptcy proceedings by Chinese creditors in March, days after Suntech defaulted on a principal payment on $US541 million of convertible bonds.

“Shunfeng is buying essentially all of Suntech’s production capacity and technology portfolio, apparently leaving the US-listed holding company a quasi-empty shell,” Berney said.

After the sale of its main manufacturing unit, Suntech is left with little more than its US sales and distribution business and an investment company that owns solar power plants in Italy. Some of those plants are under investigation in Italy for illegally availing state subsidies.

For more on this story go to:

http://www.businessspectator.com.au/article/2013/11/11/solar-energy/fading-suntech

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Suntech Announces Progress in Cayman Islands Proceedings

WUXI, China, Nov. 9, 2013 /PRNewswire via COMTEX/ — Suntech Power Holdings Co., Ltd. STP -39.25% (“Suntech” or the “Company”), one of the world’s largest solar companies, today announced that the Grand Court of the Cayman Islands, the jurisdiction of its incorporation, has granted the Company’s application for a provisional liquidation. Restructuring professionals selected by the Company from PricewaterhouseCoopers have been appointed to work with the Company’s Board of Directors to continue progressing a restructuring of the Company. The restructuring professionals will be appointed with the consent and support of the Company and the Board of Directors with the ultimate goal of achieving the Company’s restructuring in the best interest of all stakeholders.

The restructuring professionals will commence working with the Company immediately.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements, and includes the ability of to progress a restructuring of the Company. Further information regarding these and other risks is included in Suntech’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

SOURCE Suntech Power Holdings Co., Ltd.

See also iNews Cayman story published November 6 2013 “World’s former largest solar panel manufacturer applies for liquidation in Cayman” at: http://www.ieyenews.com/wordpress/worlds-former-largest-solar-panel-manufacturer-applies-for-liquidation-in-cayman/

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Suntech says U.S. bankruptcy could derail restructuring

By Tiffany Kary From Bloomberg

Suntech Power Holdings Co. (STP), the Chinese maker of solar panels whose main unit is reorganizing in the Cayman Islands, told a Manhattan court that an involuntary bankruptcy petition against it in the U.S. could derail restructuring efforts.

The creditors seeking the U.S. bankruptcy are a “tiny minority,” holding only 0.27 percent of the company’s outstanding debt, Suntech said in papers filed yesterday seeking to have the case dismissed.

The creditors’ action could “derail the substantial progress Suntech has made in reaching a consensual restructuring with a wide array of its stakeholders, including a substantial percentage of its funded debt creditors,” the company said.

Suntech American depositary receipts, each worth one ordinary share, fell 30 percent to 88 cents at 4:15 p.m. in New York, compared with a closing high for the year of $1.87.

Trondheim Capital Partners LP, Michael Meixler and Longball Holdings LLC filed the involuntary petition under Chapter 7 of the U.S. Bankruptcy Code in New York on Oct. 14. They said they held $578,230.68 in claims against the company.

The petitioners didn’t follow proper procedure, Suntech said in its filing. Some claims were acquired just before the case was started, a sign they were bought for the purpose of trying to force Suntech into U.S. bankruptcy, the company said.

No Assets

Wuxi, China-based Suntech, the world’s biggest solar-panel maker in 2011, said it’s incorporated in the Cayman Islands and has no operations or significant assets in New York. It has $541 million of senior notes outstanding and a $50 million convertible loan, according to court papers.

On Sept. 23, Suntech reached a deal with Clearwater Capital LLC and Spinnaker Capital Ltd., which act for noteholders with more than 48 percent of its notes, on how it will reorganize. The agreement calls for a debt-for-equity swap for the noteholders.

The company’s main unit was pulled into bankruptcy proceedings by Chinese banks after it missed a bond payment in March. Shunfeng Photovoltaic International Ltd. (1165), agreed to buy the unit on Nov. 1 for 3 billion yuan ($492 million).

The case is In re Suntech Power Holdings Co.; 13-bk-13350, U.S. Bankruptcy Court, Southern District of New York (Manhattan.)

For more on this story go to:

http://www.bloomberg.com/news/2013-11-07/suntech-says-u-s-bankruptcy-could-derail-restructuring.html

See iNews Cayman related story published November 6 2013 “World’s former largest solar panel manufacturer applies for liquidation in Cayman” at: http://www.ieyenews.com/wordpress/worlds-former-largest-solar-panel-manufacturer-applies-for-liquidation-in-cayman/