Market Overview

Suntech to Commence Preparations for Implementing Recapitalization Plan


Suntech Power Holdings Co., Ltd. (NYSE: STP) announced that following productive discussions with its key stakeholders earlier this week in China, an understanding has been reached with its Creditor Working Group led by Clearwater Capital Partners and Spinnaker Capital Limited for restructuring the Company.

The Company intends to immediately commence preparations for implementing a recapitalization plan that contemplates a scheme of arrangement as part of a holistic restructuring of the Suntech Group. The principal components of the restructuring scheme would include:  (i) identifying the key assets to be retained by the Company to allow it to continue its operations at a rationalized scale; (ii) the exchange of outstanding debt into the Company's equity; (iii) the setting of maximum debt levels for the Company's operating subsidiaries; and (iv) the introduction of a new strategic investor that will provide the necessary funding through the purchase of newly issued equity to complete the restructuring process. This will permit the Company to substantially improve its balance sheet and to be well positioned to continue as a major worldwide supplier in the solar industry.

The Company anticipates entering

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Posted-In: News Guidance Contracts Management M&A Global


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