Suntech, one of the worlds largest solar companies, has announced that it will challenge a Chapter 7 filing lodged against the company calling for involuntary bankruptcy.
A petition for involuntary bankruptcy was filed against Suntech under Chapter 7 of the U.S. Bankruptcy Code at the U.S. Bankruptcy Court of New Yorks Southern District. It was brought by four asserted bondholders with a collective stake of approximately $1.6 million of Suntechs Convertible Senior Notes, due by the end of 2013.
With the total amoung of notes outstanding owed by Suntech amounting to $541 million, this petition represents just 0.3% of all debts due. On September 20, a judgment was passed in favor of the settlements of certain notes. Suntech appealead this judgment, and as such is set to contest this latest filing. The company has until November 6 to lodge an official response.
Earlier this week, the company mulled the offer of a $150 million investment deal from Wuxi Guolian Development Group.