CHINA: Suntech Power Holdings Co. Ltd announced that Suntech Power International Ltd, 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 Co., Ltd. and the SPI composition proceedings, Suntech Holdings is not aware of any similar proceedings regarding any of its other entities.