Suntech European Unit Receives Creditor Reprieve in CourtEhren Goossens
Suntech Power Holdings Co., the solar-panel manufacturer involved in bankruptcy proceedings in China, said Swiss judicial authorities extended a moratorium on creditor claims on its European unit.
Suntech Power International Ltd. was granted a six month moratorium in Schaffhausen, Switzerland, that may be extended, the Wuxi, China-based company said yesterday in a statement.
“The definitive moratorium allows SPI time to restructure debt and reach an agreement with creditors,” Suntech Chief Executive Officer David King said in the statement. “SPI will continue normal operations during this process.
Suntech climbed 5 percent to $1.05 at the close in New York yesterday.
The European unit was granted a two-month provisional moratorium on creditor claims on April 9. Suntech was the world’s biggest panel supplier in 2011.
Creditors in China pulled Suntech’s main operating unit into bankruptcy proceedings in March after the company defaulted on a $541 million bond. Bondholders sued Suntech in New York June 11 over unpaid principal on convertible senior notes, plus other costs.