Suntech Announces Developments in Restructuring Process
WUXI, China, Aug. 30, 2013
WUXI, China, Aug. 30, 2013 /PRNewswire/ -- Suntech Power Holdings Co., Ltd.
(NYSE: STP) ("Suntech" or the "Company"), one of the world's largest solar
companies, today 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 into a restructuring framework agreement in
the next week or so to document the understanding that will allow the Company
adequate time to execute the restructuring so long as it progresses the
recapitalization plan and complies with the other terms in the restructuring
Mr. Zhou Weiping, Suntech's President said, "Important steps forward are being
taken towards a new Suntech. During this restructuring period, Suntech has
continued to maintain its production and warranty obligations. The
restructuring will allow us to cut our costs and optimize our margins and
production. Although there is expected to be substantial dilution for our
existing shareholders, we believe that these measures will put us in a better
and stronger position to serve our current and future customers in China,
Japan, the EU, USA and around the world."
As noted in prior announcements, the Board of Directors has recently been
reconstituted to a smaller, more geographically focused Board with the
skillsets necessary for the development and execution of a restructuring plan.
Recent new director appointments are: Mr. Michael Nacson, the new Chairman,
who has been based in Southeast Asia for more than 30 years and has extensive
restructuring experience, including projects in Hong Kong, China and North
America, with a focus on the manufacturing, technology and electronics
sectors; and Mr. Kurt Metzger who has lived in Asia for 18 years and has
significant experience relating to risk management/debt restructuring,
particularly in the sustainable energy sector. Mr. Nacson and Mr. Metzger were
nominated by the Creditor Working Group. The Company and the Creditor Working
Group will also be working together to identify a full-time executive to
assist in the restructuring process and to work with the current management
team to rebuild the Company to its former prominent position in the solar
Suntech's Chairman, Mr. Michael Nacson said, "We are pleased that we have been
able to make progress on discussions with key stakeholders involved that puts
us on a good footing to move forward with a clear business plan."
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces solar products for
residential, commercial, industrial, and utility applications. With regional
operations 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 includes the ability to successfully achieve the arrangements described
above, implement a recapitalization plan, and consummate a scheme of
arrangement. 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
For media enquiries, please contact:
Ryan Scott Ulrich
Public Relations and Investor Relations
Ph: +86 510 8531 8654
SOURCE Suntech Power Holdings Co., Ltd.
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