What next for Suntech?


Despite managing to persuade holders of more than 60% of the bonds to hold over until May 15 for payment, Suntech confirmed it had received a notice of default and acceleration from bond trustee Wilmington Trust.

The press release announcing the default notice went on to state, "Such event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from (the) International Finance Corporation and Chinese domestic lenders."

Suntech CEO David King put a positive spin on the situation and stressed that the solar module giant is still hopeful of reaching a negotiated settlement with creditors.

In the company statement King said, "It is currently a very difficult time for our company and our industry, but the management and board of Suntech are committed to finding a way forward that will take into account the rights and interests of all of its constituents, including shareholders, noteholders, lenders, customers, suppliers and employees.

"We are currently exploring strategic alternatives with lenders and potential investors, which could help to set us on a path towards longer term success. We appreciate the support and understanding of our various stakeholders as we undertake efforts to implement these measures."

In a further alarming note for investors, however, the released revealed, "Suntech is in discussions with certain of its suppliers and lenders relating to various other claims for non-payment or non-performance, which the company hopes to resolve in a timely manner."

Suntech watchers are now waiting to see what further action will be taken by those among the 40% of bondholders who did not accept last week's forbearance agreement, with solar industry commentators predicting a filing for involuntary bankruptcy followed by a possible bailout by the government of the Wuxi city where the manufacturing giant is based.

pv magazine‘s attempts to contact Suntech went unanswered.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.