Suntech to fight involuntary bankruptcy petition in US

Oct 31, 2013 - Suntech Power Holdings Co Ltd (NYSE:STP) said today it “intends to challenge” the petition from earlier this month in which several US bondholders of the company insist that it enters involuntary bankruptcy under chapter 7.

The Chinese photovoltaics (PV) maker did not provide further details on the planned battle.

The petition was filed with the US Bankruptcy Court in the Southern District of New York by Trondheim Capital Partners LP, Michael Meixler and Longbell Holdings LLC in the middle of October. Together, these bondholders hold some USD 1.6 million (EUR 1.2m) of Suntech’s 3% senior convertible noted that matured earlier this year, the company calculates. It needs to respond to the petition by November 6.

In mid-March, Suntech failed to make the principal payment on the USD-541-million 3% bond, touted as the first bond default for a China-based company. A few days later Wuxi Suntech, the company’s principal unit in China, entered insolvency proceedings and restructuring.

In September this year Trondheim Capital Partners LP and Michael Meixler won a legal dispute on a claim for USD 550,000 in debt owed by Suntech. In today’s statement the Chinese group said it was already appealing that judgement.

(USD 1 = EUR 0.732)

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