China-based developer Solar EnerTech Corp has advised that despite its financial struggles requiring it to deregister its common stock; it has retained FTI Consulting to lead its restructuring plans. A chief restructuring officer from FTI has been appointed to explore alternatives to maximize the return to investors.
A Form 15 has been voluntarily filed with the Securities and Exchange Commission by Solar EnerTech to deregister from its common stock, par value $0.001 per share under the Securities Exchange Act of 1934. The company is now under obligation to file certain reports with the SEC, including Forms 10-K, 10-Q and 8-K and expects deregistration to become effective 90 days after the date of filing.
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Solar EnerTech's CEO, Leo Shi Young, explained, “As the company's liquidity and financial position continues to be more and more challenging and certain outstanding obligations become due, we have retained FTI Consulting to help us assess our situation and develop a plan for maximizing the return to our stakeholders. Our chief restructuring officer will enable us to focus efforts on pursuing the strategic options available to us while management can continue its focus on company operations. In addition, we have carefully evaluated the advantages and disadvantages to the company of continuing registration with the SEC and in light of the costs and administrative burdens associated with being a public company, our board has determined that deregistering will result in significant cost reductions necessary given the company's liquidity and financial position.”