Suntech Singapore Fails to Pay the Judgment Debt Due to PSS and has Its Equity
Interest in a Core Subsidiary Frozen by the PRC Court
GEORGE TOWN, Cayman Islands, March 18, 2014
GEORGE TOWN, Cayman Islands, March 18, 2014 /PRNewswire/ --Suntech Power
Holdings Co., Ltd. (OTC: STPFQ) (the "Company" or "Suntech") today announced
that, following the January 27, 2014 judgment from the High Court of the
Republic of Singapore ordering Suntech Power Investment Pte., Ltd. ("Suntech
Singapore") to pay to Suntech's subsidiary, Power Solar System Co., Ltd. (in
liquidation) ("PSS"), approximately US$263.9 million (the "Judgment Debt"), on
February 20, 2014, the Liquidator of PSS issued a statutory demand against
Suntech Singapore for the Judgment Debt. Suntech Singapore was required to
repay the Judgment Debt by March 13, 2014, but it has failed to do so. Suntech
Singapore is now deemed to be unable to pay its debts under the Singapore
Companies Act. However, on March 12, 2014, Suntech Singapore filed an
application to set aside the Judgment Debt. PSS is considering the application
and will make further announcements as may be warranted.
PSS has also filed a civil complaint with the Shanghai No.1 Intermediate
People's Court ("the PRC Court") against Suntech Singapore for an outstanding
principal amount of US$11 million and its overdue interest. The PRC Court
officially accepted filing of this complaint on February 18, 2014, with the
hearing fixed on November 5, 2014. In conjunction with the civil complaint,
PSS applied to the PRC Court for a preservation order in respect of onshore
assets held by Suntech Singapore, in particular an equity interest in Suntech
Power Company Limited ("Suntech Shanghai"). The application was granted by the
PRC Court on March 4, 2014. The preservation period will initially be for a
year, subject to extension upon application by PSS.
"We will rigorously defend the application by Suntech Singapore to set aside
PSS' judgment for the sum of US$263.9 million, and will take all necessary
steps to recover value for creditors," said Mr. John Ayres, a Liquidator of
PSS. "We are also making substantial progress in the investigation of the
purported transfer of the equity interests in Suntech Power Japan Corporation
("Suntech Japan") and Suntech Singapore to Wuxi Suntech Power Co., Ltd. These
actions appear to have been taken without proper regard for the interests of
creditors and shareholders of the Company and appropriate actions will be
taken in due course," added Mr. Ayres.
"Suntech Shanghai is a valuable core subsidiary of Suntech Singapore, and in
obtaining the asset preservation order in the PRC we have hopefully prevented
the asset from being placed beyond reach. We are confident that the actions
being taken will lead to a successful recovery for creditors of the Company
and we call upon the relevant parties to work with us to expedite a resolution
of the various claims and matters which we are dealing with," commented Mr.
David Walker, the Joint Provisional Liquidator of the Company.
Suntech Power Holdings Co., Ltd. (OTC: STPFQ), through its international
subsidiaries, 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 status of any transfer or disposal of shares of Suntech Japan
and Suntech Singapore. 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
For media enquiries, please contact:
Ph: +1 345 914 8662
Ryan Scott Ulrich
Public Relations and Investor Relations Director
Ph: +86 510 8531 8654
SOURCE Suntech Power Holdings Co., Ltd.
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