Shunfeng ire at Suntech legal blow
Jiangsu Shunfeng has slammed Suntech Power Holdings’ “regrettable” recent legal victory over Suntech Singapore, suggesting that the “thousands” of Chinese jobs it could save were it to finalise its acquisition of Wuxi Suntech may be thrown into jeopardy by the legal wrangling.
Earlier this week Suntech Power Holdings, the rump of the former Suntech empire, said that its Power Solar System (PSS) unit had won a $264m legal judgement over Suntech Singapore.
Suntech Singapore was formerly a subsidiary of PSS, but was last spring transferred to Wuxi Suntech – Suntech’s former manufacturing arm for which Shunfeng has offered 3bn yuan ($500m) – under dubious circumstances.
Using ominous language, Shunfeng notes that its acquisition of Wuxi Suntech has not been finalised, saying that Wuxi Suntech is still under administration in China.
Shunfeng made its takeover offer “with an objective of rescuing and reviving what has previously been a market leader in the production of solar modules and solar cells”, the company says.
It adds that its “rescue” of Wuxi Suntech “could lead to thousands of jobs saved” in China, claiming that the recent events surrounding Suntech Singapore and Suntech Japan are “therefore regrettable”.
Shunfeng insists that the transfer of Suntech Singapore and Suntech Japan to Wuxi Suntech was made well before it made its takeover offer, suggesting that it should not be left holding the bag for their various, and previously unknown, debts and legal fees.
Shunfeng is working with Wuxi Suntech’s administrator in China to “minimise the impact” that Suntech Singapore and “its financial position” would have on Wuxi Suntech, and therefore the acquisition.
Suntech Power Holdings’ bereft creditors, meanwhile, are looking to get as much as they can out of the company and its former subsidiaries.
Shunfeng adds that Suntech Singapore intends to fight its recent adverse legal judgment, which was rendered, according to Suntech Power Holdings, because Suntech Singapore failed to respond to a legal summons within the required time frame.