Suntech Files Application for Provisional Liquidation in Cayman Islands
Suntech Power (NYSE: STP) today announced it has filed an application for a provisional liquidation with the Grand Court of the Cayman Islands, the jurisdiction of its incorporation.
In the event the Grand Court grants the Company's application, restructuring professionals selected by the Company would be appointed to work with the Company's Board of Directors to continue progressing a restructuring of the Company. By commencing such proceeding in the Cayman Islands, the Company will have the benefit of protection and additional time to complete negotiations and conclude the restructuring in the best interests of all stakeholders. The Company will consider pursuing a Chapter 15 filing in the United States following the grant of the application in the Cayman Islands to obtain similar protections in the United States.
As previously announced, the Company has reached an understanding with its Creditor Working Group which includes implementing a recapitalization plan that contemplates a scheme of arrangement. The principal components of the restructuring scheme would include, among other things, the exchange of outstanding debt into the Company's equity and the introduction of a new strategic