A select group of Suntech Power Holdings bondholders have agreed a second time extension to talks over its US$541 million debt payment default.
Suntech said that a new forbearance agreement was signed, extending talks from the end of June to the end of August, 2013.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The company said that talks included the possibility of “equitization of all major debt claims held by the bondholders,” in other words a debt-for-equity swap.
However, the large group of select bondholders were said to be keen to collaborate with Suntech and seek “strategic and financial investors to bring in new capital to Suntech.”
As part of a possible debt-for-equity swap deal, bondholders would nominate two additional members to Suntech’s Board of Directors. The company has already granted one seat on the Board.
David King, Suntech's CEO said, “Through the efforts made by the bondholders and the company in the past months, we now have a clear path and focused work plan. The Company and the Bondholders will work closely at both the Board and operational levels in the coming weeks. We remain optimistic that a mutually acceptable consensual restructuring of the company is achievable.”
