Suntech to appeal NYSE delisting
Suntech Power Holdings said it plans to appeal a decision by the New York Stock Exchange's regulator to delist the troubled PV group’s shares.
The company, based in China’s Jiangsu province, received a notice from NYSE Regulation two weeks ago stating that its American Depositary Shares (ADRs) would be suspended from trading before the opening of the 11 November session, because of lingering questions about its ongoing restructuring.
The oversight body also raised concerns about Suntech Power Holdings’ efforts to revise its earnings statements from 2010 and 2011.
Wuxi Suntech, the insolvent main manufacturing unit of Suntech Power Holdings, became insolvent in March after the company defaulted on $541m of bonds.
Earlier this month, Suntech’s creditors and the administrator overseeing its bankruptcy approved the company’s sweeping restructuring plan, under which Chinese PV group Shunfeng Photovoltaic Interational was set to buy its manufacturing assets for $492m.
The Wuxi Intermediate People’s Court recently approved Shunfeng’s purchase, raising speculation that the Suntech group's complicated restructuring process was finally drawing to a close.
But late last week, Shunfeng revealed it would consult its lawyers after another apparent twist in the planned Wuxi Suntech acquisition. Shunfeng said it had received a letter from provisional liquidators of Suntech Power Holdings, which is incorporated in the Cayman Islands, stating that it would not approve any deal to transfer Wuxi Suntech’s assets.