Suntech Power Holdings Co., Ltd. has announced that a July 16 order by the Schaffhausen Cantonal Court in Switzerland approving dividend agreement to resolve creditor claims against the group's European subsidiary, Suntech Power International (SPI), became effective as of August 8.
The Schaffhausen-based SPI is now a solvent member of the Suntech Group and under the operational control of its board of directors. A Swiss administrator has been appointed by the Schaffhausen Cantonal Court to continue to work with the board in the coming months to supervise and ensure that the terms of the dividend agreement are properly executed, which will include the payment of dividends to SPI's creditors and administrative matters.
David Walker, SPI's joint provisional liquidator, said, "The court order has closed a difficult chapter for SPI and we are pleased that the hard work of the SPI board, the Swiss administrator, the chief restructuring officer of SPI Mr. Robert Moon, and the creditors of SPI, who have been supportive throughout this process, has been recognized."
Walker described the development as "an important milestone to the restructuring, adding that SPI was "a significant entity in Europe and an integral cog for the continued restructuring of the group as a whole."
The move follows a year-long moratorium on the credit claims, first granted for six months by Swiss authorities in Schaffenhausen in June 2013 and later extended for another six months in order to give SPI additional time to restructure its debt and reach an agreement with creditors. SPI continued normal operations during the period.
SPI is not part of the Wuxi Suntech group owned by Shunfeng.
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