Suntech European subsidiary granted six month moratorium on creditor claims

Suntech Power Holdings announced that Suntech Power International (SPI), the Company’s principal operating subsidiary in Europe, has been granted a definitive moratorium on creditor claims from the judicial authorities in Schaffhausen, Switzerland.

The moratorium is for a six month period and may be extended thereafter.

Previously, on April 9, 2013, SPI had been granted a provisional moratorium for two months on creditor claims as a result of over-indebtedness. The majority of SPI’s debt is Suntech inter-company debt.

“SPI has already met important milestones in the restructuring process. The definitive moratorium allows SPI time to restructure debt and reach an agreement with creditors. SPI will continue normal operations during this process,” said David King, Suntech’s CEO.

Other than the insolvency and restructuring of Suntech Holdings’ Chinese subsidiary Wuxi Suntech Power and the SPI composition proceedings, Suntech Holdings is not aware of any similar proceedings regarding any of its other entities.

Suntech, with 2,000MW of annual production capacity at the end of 2011, has filed for bankruptcy following a default in US$541 million bond payments.

Suntech recorded a net loss of $1.0 billion in 2011, from a profit of $237 million in 2010. The company has not yet revealed the financial results for 2012.

Suntech unveils anti-dumping tariff free solar modules in European market

To survive the new European anti-dumping tariff, Suntech Power has developed its European Union anti-dumping (AD) tariff free modules, Residential Energy Storage System (RESS), and double glass module at Intersolar 2013 in Munich, Germany.

The module’s components will be manufactured outside of Mainland China and will not be subject to the trade tariffs announced by the European Union on June 5th.

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