Suntech’s European subsidiary gets provisional moratorium to restructure its debt

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Greentech Lead Europe: Suntech, which is facing insolvency proceedings in China, announced its principal operating subsidiary in Europe has been granted a provisional moratorium for two months to allow Suntech Power International (SPI) to restructure its debt.

The moratorium was given on creditor claims by the judicial authorities in Schaffhausen, Switzerland.

SPI had applied for the provisional moratorium as a result of over-indebtedness, a requirement under local law and regulations.

The court has appointed an administrator to assess SPI’s financial condition and the prospects of reaching a composition agreement with creditors to restructure SPI’s outstanding debt. SPI will continue its operations and serve its European customers during this period.

The company revealed that other than the insolvency and restructuring of Suntech Holdings’ Chinese subsidiary Wuxi Suntech Power and the SPI composition proceedings, Suntech Holdings is not aware of any similar proceedings regarding any of its other entities.

Suntech filed for bankruptcy in March after a group of eight Chinese banks filed a petition for insolvency and restructuring of its Chinese subsidiary Wuxi Suntech Power Holdings in the Wuxi Municipal Intermediate People’s Court in Jiangsu Province, China. Suntech had defaulted on a $541 million bond payment.

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