Suntech Power Holdings Co., Ltd. (NYSE: STP) reported that an understanding has been reached with its creditor working group led by Clearwater Capital Partners and Spinnaker Capital Ltd. for restructuring the company.
The company said it intends to begin a recapitalization plan as part of a holistic restructuring of the Suntech Group. The principal components of the restructuring scheme would include identifying the key assets to be retained by the company to allow it to continue its operations at a rationalized scale; exchanging outstanding debt into the company´s equity; setting maximum debt levels for the company´s operating subsidiaries; and introducing a new strategic investor. This will permit the company to improve its balance sheet and to be well positioned to continue as a major worldwide supplier in the solar industry.
Zhou Weiping, Suntech´s president said, “During this restructuring period, Suntech has continued to maintain its production and warranty obligations. Although there is expected to be substantial dilution for our existing shareholders, we believe that these measures will put us in a better and stronger position to serve our current and future customers in China, Japan, the EU, USA and around the world.”
Suntech Power Holdings produces solar products for residential, commercial, industrial, and utility applications. With regional operations in China, Switzerland, and the United States, and gigawatt-scale manufacturing worldwide, Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries.