March 8 (Bloomberg) -- Suntech Power Holdings Co. has been sued by Bank of China Ltd. over a loan contract dispute, the 21st Century Business Herald said yesterday, citing a person it didn’t identify.
A hearing on the case will be held later this month, the newspaper said. A board of seven Chinese lenders led by Bank of China was formed in the fourth quarter to cope with Suntech’s debt due to mature, the report said. Suntech has a $541 million convertible bond due on March 15.
The board agreed to loan more to the company only if Shi Zhengrong, the founder and former chief executive officer, gives away his stake or quits Suntech, the Herald said. Shi, who founded Suntech in 2001, was ousted as chairman this week.
“Suntech is aware of the litigation and we intend to resolve it amicably,” a company spokesperson, who declined to be named, said by e-mail today in response to the report. Two calls to Bank of China’s news department went unanswered.
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