Suntech hit by $541m bond default notice

Suntech has not reported a profit since the first quarter of 2011

Suntech has not reported a profit since the first quarter of 2011

Embattled Chinese PV group Suntech moved further towards the brink today after being served with a default notice from the trustee overseeing the $541m of bonds that it was due – but failed – to pay on Friday.

Suntech – which is clinging to the lifeline that almost two-thirds of the actual bondholders have given it a two-month breathing space – admitted to its investors today that legal action is a live prospect, and that its other debts had now been sucked into the equation.

The company said: “Suntech has entered into a forbearance agreement with holders of over 60% of the notes, one of the terms of which is that the forbearing note-holders will cooperate with Suntech in addressing certain legal proceedings that may be initiated against it.

“Suntech understands that those note-holders have Log in to read complete article.

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