The joint liquidators of former solar giant Suntech have started chapter 15 bankruptcy proceedings in the U.S.
Having been granted a provisional liquidation in the Cayman Islands base where the company is registered, the liquidators are attempting to have that decision recognized in the U.S. and have started proceedings in a federal court in the Southern district of New York.
In a statement announcing the move, published on Suntech’s website on Saturday, joint liquidator David Walker said the move would protect Suntech from actions brought by U.S. creditors and was a necessary part of the company’s restructuring plans.
Suntech last month negotiated with the holders of U.S. notes seeking to force it into involuntary bankruptcy through the New York court, persuading the noteholders to abandon the action.
Shortly after announcing the deal with its U.S. creditors, Suntech secured a judgement from the judicial authorities in Singapore that its Suntech Singapore subsidiary to be transferred to Chinese rival Shunfeng Photovoltaic International as part of a takeover of Suntech’s main Wuxi manufacturing division owes the liquidated parent company US$264 million.