Suntech in Caymans liquidation OK
Suntech Power Holdings (SPH) said a court in the Cayman Islands granted its application for provisional liquidation.
SPH, parent group of the stricken PV manufacturing giant, says the liquidation approval in the Caymans – where it is incorporated – allows it to “continue progressing a restructuring of the company”.
A statement said staff from accountants PriceWaterhouseCoopers will start working with SPH’s directors “with the ultimate goal of achieving the company's restructuring in the best interest of all stakeholders”.
The twists and turns of the saga have sent Suntech’s US-listed shares crashing as investors there become increasingly nervous that little will remain for them at the end of the restructuring process.
The company’s shares closed another 40% down in New York on Friday, leaving them 60% lower last week at $0.535.The company's shares are in the process of being delisted.
The main Chinese unit of Suntech became insolvent in March after the company defaulted on $541m of bonds.
A small group of bondholders in the US is trying to force Suntech into involuntary bankruptcy there – a move SPH is fighting and claims could derail the restructuring.
Last month Shunfeng Photovoltaic International (SPI) revealed it would acquire the Chinese unit, Wuxi Suntech, for 3bn yuan ($491m).