Suntech Singapore has failed to pay the US$263.9 million awarded to Suntech Power Holdings subsidiary Power Solar System (PSS).
A Singapore court gave the firm until 13 March to pay the sum to PSS, which is currently in liquidation. Suntech Singapore has asked to have the debt set aside. The court can choose to accept the application if it feels the debt is in some way disputed.
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PSS has also filed a civil case against Suntech Singapore with Shanghai No.1 Intermediate People's Court over an unpaid debt of US$11 million plus interest.
As part of this claim it has applied for a preservation order on the Singapore subsidiary’s China-based assets, in particular, a stake in Suntech Shanghai. A hearing will be held on 5 November 2014.
The preservation order will last for one year and PSS’ administrators said they hope it will prevent any assets “being put beyond reach”.
Wuxi Suntech’s sale to Shunfeng Photovoltaics has been twice delayed owing to the ongoing dispute between former Suntech subsidiaries.
The administrators of PSS are unhappy with the transfer of equity in Wuxi Suntech prior to the deal’s initiation.
“We will rigorously defend the application by Suntech Singapore to set aside PSS' judgment for the sum of US$263.9 million, and will take all necessary steps to recover value for creditors,” said John Ayres, a liquidator of PSS.
“We are also making substantial progress in the investigation of the purported transfer of the equity interests in Suntech Japan and Suntech Singapore to Wuxi Suntech. These actions appear to have been taken without proper regard for the interests of creditors and shareholders of the Company and appropriate actions will be taken in due course,” claimed Ayres.
Wuxi Suntech has said it was sold to Shunfeng by the bankruptcy court of Wuxi and the dispute is between the two sets of administrators.
