Shunfeng Photovoltaic International Ltd., the Chinese company seeking to buy the main unit of what was once the world’s largest solar-panel maker, said the deal hasn’t been approved by Suntech Power Holdings Co.’s liquidators.
Provisional liquidators notified Shunfeng that Suntech isn’t authorized to sell its Wuxi Suntech unit and they haven’t approved any transfer or disposal, according to a Hong Kong stock exchange filing yesterday. The liquidators were appointed by a Cayman Islands court on Nov. 7.
Suntech’s main unit was pulled into bankruptcy proceedings by Chinese banks after the Wuxi, China-based company missed a bond payment in March. Shunfeng agreed to buy the unit on Nov. 1 for 3 billion yuan ($492 million). Suntech was the world’s biggest solar panel maker in 2011.
Shunfeng said yesterday that that transfers took place while Wuxi Suntech was under the control of an administrator, according to the filing. That means the liquidators should lodge any objections with the administrator or with the Wuxi Intermediate People’s Court, which is overseeing the process under Chinese bankruptcy law.
The Suntech liquidators said they will “investigate and pursue” the transfer of two other units, Suntech Power Investment Pte. and Suntech Power Japan Corp., to Wuxi Suntech because the disposals may be voidable under British Virgin Islands law, according to the filing.
Shunfeng, based in Changzhou, China, plans to discuss the situation with its lawyers and the Wuxi Suntech administrator.
Suntech told a Manhattan court on Nov. 7 that an involuntary bankruptcy petition against it in the U.S. may derail consensual restructuring efforts. Shunfeng said Nov. 12 that creditors and equity-interest holders of Wuxi Suntech approved the sale.