Aug 22, 2014 - Chinese solar products maker Suntech Power Holdings (OTC:STPFQ) said yesterday its principal operating unit in Europe has ended the moratorium phase of insolvency proceedings and will return to the control of its board of directors.
The court in Schaffhausen, Switzerland, has given its nod to the dividend agreement of the subsidiary, Suntech Power International Ltd’s (SPI’s), with its creditors and ended the mandate of the insolvency administrator. The agreement was earlier approved by SPI’s creditors, while the court ruling became effective as of August 8.
The Schaffhausen Cantonal Court has appointed an administrator to supervise SPI’s board in the following months and make sure the terms of the dividend agreement are followed properly. The administrator will also keep track on dividend payments, Suntech said.
Suntech Power Holdings had previously said that most of SPI’s debt represents Suntech inter-company debt. The troubled Chinese solar group filed for Chapter 15 bankruptcy in February 2014. It now intends to refocus to the retail solar business in the USA, Japan and Europe. Its main production subsidiary in China, Wuxi Suntech Power Co, was acquired by China-based Shunfeng Photovoltaic International Ltd (HKG:1165) for CNY 3 billion (USD 487m/EUR 366m).
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.