Saturday, May 25, 2013

Suntech's Local Creditors Claim $2.5 Billion As Restructuring Starts


Thu., May 23, 2013

Local creditors of Wuxi Suntech, the bankrupt unit of Chinese solar panel maker Suntech Power Holdings Co Ltd, on Wednesday claimed the subsidiary owed them a combined $2.5 billion, at the start of a debt restructuring process expected to last months. Wuxi Suntech, the biggest subsidiary of New York-listed Suntech Power, filed for bankruptcy protection in China in March, five days after its troubled parent company defaulted on a $541 million dollar convertible bond. The restructuring of Suntech's domestic debts is being closely watched by its overseas creditors, whom analysts say are expected to take a "haircut" - or suffer losses. Last week Suntech Power said it reached an agreement with some foreign creditors to further defer its obligations on the bond. The claims for the domestic debts of 15.6 billion yuan ($2.5 billion) came from more than 500 creditors, including banks and some of Wuxi Suntech's suppliers, but most of the claims have yet to be reviewed and verified by its court-appointed debt administrator, creditor representatives told Reuters. The court held the first meeting of Wuxi Suntech's creditors in the eastern Chinese city of Wuxi - where Suntech Power is headquartered - on Wednesday to brief creditors on the debt restructuring and the debt administrator vowed to protect creditors' interest.

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