Suntech Signs Forbearance Agreement with Convertible Note Holders
WUXI, China, March 11, 2013
WUXI, China, March 11, 2013 /PRNewswire/ -- Suntech Power Holdings Co., Ltd.
(NYSE: STP), one of the world's largest producers of solar panels, today
announced that it has signed a forbearance agreement with the holders of more
than 60% of the Company's 3% Convertible Notes (the "Notes"). Under the
forbearance agreement, in the event the Company does not make payments due
under the Notes on March 15, 2013, the signing bondholders agree not to
exercise their rights under the Notes and the related indenture until May 15,
2013, subject to certain market-standard early termination events.
The forbearance agreement will enable Suntech to continue to work with holders
of the Notes with a view to achieving a consensual restructuring.
David King, Suntech's CEO, said, "The forbearance agreement demonstrates
bondholders' support for Suntech and provides an excellent platform to further
discussions towards a mutually agreeable restructuring of the Notes. We are
making progress and are working to find a resolution soon. At the same time,
we are continuing our cost and operational review to further improve our
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces solar products for
residential, commercial, industrial, and utility applications. With regional
headquarters in China, Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80 countries.
Suntech's pioneering R&D creates customer-centric innovations that are
designed to drive solar to grid parity against fossil fuels. Suntech's mission
is to provide everyone with reliable access to nature's cleanest and most
abundant energy source.
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements,
and include statements about the prospects of the solar industry and the
Company's ability to successfully resolve its liquidity issues, achieve a
consensual restructuring of the 3% Convertible Notes and return to
profitability. Further information regarding these and other risks is included
in Suntech's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F. Suntech does not undertake any
obligation to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under applicable
SOURCE Suntech Power Holdings Co., Ltd.
Contact: Shashin Surti, Weber Shandwick for Suntech, +86-21-2411-0046,
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