Suntech gets two month bond reprieve

Suntech has clinched a two-month “forbearance agreement” with the holders of roughly 60% of its $541m of convertible bonds due on 15 March, while the company is “making progress” with the remaining holdouts.

Those bondholders who have signed onto the agreement will not exercise their rights if they are not repaid on Friday, Suntech says, allowing the company to work with them further “with a view to achieving a consensual restructuring” before a new deadline of 15 May.

The announcement comes at a frantic period for the Chinese PV giant, which recently booted founder and long-term chief executive Shi Zhengrong from its board, setting in motion what some observers describe as a fight for control of the company – the world’s largest supplier Log in to read complete article.

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