Suntech Power Holdings seeking US Chapter 15 liquidation

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Updated. The latest but not unexpected twist to Suntech Power Holdings financial position is that the company is seeking US court, Chapter 15 liquidation, according to an SEC filing by the NYSE-listed company.

Initially, Suntech has filed an application for a provisional liquidation with the Grand Court of the Cayman Islands, the jurisdiction of its incorporation. This would provide the company with the correct legal documentation for protection against creditors and sets in motion the opportunity to seek Chapter 15 liquidation in the US courts, protecting it from creditors in the US.

Suntech recently reported that several small bondholders were seeking winding-up orders in US courts as part of Suntech’s previous bond payment default. Suntech still has an agreement with a larger group of bondholders, known as the Creditor Working Group to negotiate its way out of the financial problems associated with the bond default.

Suntech Wuxi, the holding companies major manufacturing operations in Wuxi, China was recently provisionally sold to Shunfeng Photovoltaics, via the administrator handling the company’s insolvency proceedings. 

Chapter 15 is used by non-resident US companies seeking to handle bankruptcy proceedings in US courts.


According to Cayman Island court papers filed by Suntech Power Holdings in regards to its liquidation plans, the holding company would not be a manufacturer of PV modules but become an independent reseller and distributor of PV products, post insolvency proceedings, according to the Wall Street Journal.

The report noted that Suntech Power Holdings had as assets US and Europe that included sales-and-distribution businesses, as well as project developer arm, Global Solar Fund.

However, the holding company stated in the court filings that at the end of June, 2013 it had only US$4.3 million in cash.

Global Solar Fund (GSF) is currently being investigated by Italian courts, which have already seized 47 PV power plants with a total generating capacity 37.8MW or around 26.9% of GSF’s total generating capacity, according to Suntech in a recent statement.

Yet feed-in tariff (FiT) payments have not been stopped to Suntech while the investigation into possible fraud continues, suggesting that Suntech is receiving regular payments under the Italian FiT system. Questions were raised by the courts over whether some of GSF’s power plants received FiT payments when they were not grid connected.

Update 2. NYSE delisting

Additional financial developments since Suntech announced the possibility of filing for Chapter 15 in US courts was an announcement from the New York Stock Exchange (NYSE) to delist the American Depositary Shares of Suntech Power Holdings and suspended trading prior to the opening on Monday, November 11, 2013.  
NYSE said that uncertainty surrounding the company’s planned restructuring as well as uncertainty about its ability to complete its Form 20-F for the fiscal year ended December 31, 2012 within the timeframes required. 
Suntech had already been warned about not filing 2012 financial results over 18-months ago. 
19 August 2021
The utility-scale PV market is poised for exponential growth and yet the industry still has many fundamental opportunities to improve on standards and best practice. Tracker shade loss has been one of those topics that deserve more attention, but has been typically handled by derate factors rather than trying to accurately forecast the loss over the life of the system. Join Nextracker’s subject matter experts, Aron Dobos and Neelesh Umachandran, and Rounak Kharait, director of solar energy assessments at DNV, for a webinar about why shade modeling matters and recommendations on what the solar industry should do about it.
25 August 2021
Energy Next is a new industry exhibition focusing on the latest renewable energy and energy efficiency technology, which will be held for the first time in 2021 in Sydney, Australia alongside the Clean Energy Council’s Australian Clean Energy Summit, the peak gathering of leaders driving Australia's energy transformation. Organised by the same people behind Australia’s largest clean energy event, All-Energy Australia, Energy Next will give visitors two days of access to key suppliers in the industry, free-to-attend professional development and industry workshops, and networking opportunities to better understand clean energy issues and solutions and learn about the latest developments in this transformational, dynamic sector.
25 August 2021
The Intersolar Summit Brasil Nordeste takes place in Fortaleza, Brazil. It addresses leading local and international experts on solar power and renewable energy in the region. The Summit’s mission is to provide in-depth education, enable high-quality networking opportunities, expand the use of PV technologies at regional and national level and strengthen the local PV industry. The Intersolar Summit Brasil Nordeste is organized by Intersolar South America - Latin America’s largest exhibition and conference for the solar industry: Solar Promotion International GmbH, Pforzheim, Freiburg Management and Marketing International GmbH (FMMI) and Aranda Eventos & Congressos Ltda, São Paulo as co-organizer.
25 August 2021
Join us to hear directly from the CTOs and heads-of-research from the top-20 cell/wafer producers to the PV industry today. The event will focus on predicting the key metrics underpinning the next big shift to n-type with answers to the key questions: When will the transition to n-type happen? Which companies will be first to 10 GW capacity and production? Who will be the key equipment suppliers for the new production lines? Which n-type process flow/architecture will emerge as the front-runner? What will polysilicon purity and wafer thickness levels look like for optimized n-type manufacturing? What will the upstream poly/wafer supply-chain look like in 5 years from now?
26 August 2021
In this webinar, JA Solar will present its product portfolio based on the latest technologies to improve your PV projects, ensuring maximum reliability and performance. During the webinar we will receive insight from JA Solar about its solar technology roadmap and how the manufacturer is providing customers with innovative solutions to suit their needs, while we will also analyse how to determine the best product solution for each solar project.
6 September 2021
The 38th European Photovoltaic Solar Energy Conference and Exhibition will be held online from 6 - 10 September 2021, allowing PV experts from all around the globe to participate with just one click! The EU PVSEC is the world's leading forum for PV Research and Development and the biggest Conference on PV Solar Energy worldwide. That is why PV experts from all around the globe are keen on gathering together each year to be part of this specialist’s event, to present and discuss the latest developments in Photovoltaics, to network and to conduct business.

Read Next

August 3, 2021
Solar developer Pacifico Energy has started building work on a 121MWdc solar project on the site of a former golf course in Japan, with juwi Shizen Energy hired as engineering, procurement and construction (EPC) contractor.
August 3, 2021
The Australian state of Victoria has unveiled six grid upgrade projects as part of efforts to unlock new renewables investment.
August 3, 2021
AES Indiana, a subsidiary of power distribution company AES Corporation, is planning to acquire and construct a 250MW PV project paired with a 180MWh energy storage facility in Indiana.
August 3, 2021
The government of Serbia has signed an agreement with US company UGT Renewables to cooperate on the construction of solar and energy storage projects in the Balkan country.
August 3, 2021
American solar panel manufacturers Auxin Solar and Suniva have filed a petition with the US International Trade Commission (ITC) to extend a tariff system for cells and modules, despite warnings that it was damaging the US solar industry
August 3, 2021
PV inverter manufacturer SolarEdge Technologies posted record quarterly revenues in Q2, thanks in part to a strong performance in Europe.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021