Suntech, Main Unit to Cooperate on Licensing and SalesEhren Goossens
Suntech Power Holdings Co. struck a licensing agreement with its Wuxi Suntech Power Co. unit, which is in the process of being acquired after being pulled into bankruptcy last year.
Under the agreement, Suntech Power will license certain product certificates to Wuxi Suntech and will help market Wuxi Suntech solar products in the U.S. and Europe, according to a statement yesterday. Suntech Power will earn commissions on those sales and provide customer support for a year.
Wuxi Suntech is being acquired for 3 billion yuan ($483 million) by Shunfeng Photovoltaic International Ltd., whose shareholders approved the deal on April 7. Suntech Power is liquidating in the Caymans Islands, where it’s registered, and filed for bankruptcy court protection from U.S. creditors on Feb. 21.
Suntech Power failed to repay $541 million in bonds that matured in March 2013, and a group of Chinese banks subsequently pulled Wuxi Suntech, its main unit, into bankruptcy proceedings.
Neither Suntech Power nor its court-appointed joint provisional liquidators are “currently able to exert management control or authority over Wuxi Suntech,” it said in the statement. “No assurances can be given, however, that Suntech Power retains equity interest in Wuxi Suntech.”