Suntech Said to Get Default Notice on $541 Million Unpaid Bonds
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The trustee administering $541 million in bonds from Suntech Power Holdings Co. Ltd. sent the solar company a notice of default yesterday as the deadline to redeem the notes passed, a person familiar with the matter said.
The move allows bondholders to sue the Chinese company in U.S. courts, according to the person, who asked not to be named because the information hasn’t become public. A default would be the first by a mainland Chinese company. Suntech said holders of 63 percent of the bonds agreed to delay exercising their rights for two months until May 15.