Suntech reaches deal with bondholders

The Chinese panel manufactuer became the first company from mainland China to default on its bonds after being unable to repay $541 million of notes, which were due March 15.

Under the new forbearance agreement, bondholders agree not to exercise their rights to take legal action in order to recoup payments owed them until June 28.

"This new forbearance agreement demonstrates bondholders’ continued support for Suntech," said Suntech CEO David King. "The agreement will enable Suntech to continue to work with bondholders towards achieving a consensual restructuring."

The move comes a day after the Wuxi-based Suntech announced that it received a notification from the New York Stock Exchange informing the company of its failure to timely file its Form 20-F for the fiscal year ended December 31, 2012, or its 2012 annual report.

Suntech announced on May 1 that it required additional time to complete its 2012 annual report and would delay the filing beyond the deadline of April 30.

The company said it was "working diligently to complete these assessments and file restated financials for 2010 and 2011, as well as the 2012 annual report, as soon as practicable."

The NYSE has indicated that it will closely monitor the status of Suntech’s late filing and related public disclosures for up to a six month period from its due date.

If the company fails to file its annual report within six months from the filing due date, the NYSE may nevertheless allow its securities to trade for up to an additional six months.