Suntech has announced the authorities in the Cayman Islands, where its international holding company is registered, have granted its application for provisional liquidation.
The Suntech Power Holdings international parent company, which will be left little more than a shell if a planned sale of the main manufacturing division in China Wuxi Suntech is sold off to Jiangsu Shunfeng, has successfully applied to the Grand Court of the Cayman islands for liquidation in the face of efforts by U.S. bondholders to force an involuntary insolvency of the company in the U.S.
If the petition, lodged in the U.S. Bankruptcy Court, southern division of New York in Manhattan, by holders of around $500,000 worth of Suntech Power Holdings bonds, succeeds, it could scupper the planned $493 million acquisition of Wuxi Suntech's manufacturing lines by fellow Chinese cell and module manufacturer Jiangsu Shunfeng.
Suntech announced, through a press release on Saturday, professionals from accountants PricewaterhouseCoopers had begun working on restructuring the international holding company, with a view to liquidation, ‘immediately.'
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