Having defaulted on its US$541 million bond, and its main Chinese subsidiary forced into bankruptcy, Suntech Power Holdings shares listed on the New York Stock Exchange (NYSE) have since traded well below the US$1.0 level for over 30-trading days.
This has resulted in Suntech’s second delisting warning in the last 12-months, though, as before, the company has six months to regain compliance.
However, in less than two months bond holders will be legally entitled to proceed with court action in the US to force the company into bankruptcy in a hope that they can recoup all or some of the funds owed. Such bankruptcy proceedings would make delisting almost a forgone conclusion.
Suntech has told the NYSE that it plans to regain compliance within the stipulated timeframe but did not say which course of action would be taken for the compliance. One course of action open is to plan for a reverse stock split to boost the share price above the minimum level.