Suntech America disclosure statement OK'd; confirmation hearing set

By Mark Reccek

Bethlehem, Pa., Jan. 14 – Suntech America, Inc.'s disclosure statement was approved, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Feb. 25.

Creditor treatment under the plan includes:

• Holders of secured claims will be paid in full and voting rights are impaired by the plan;

• Holders of priority non-tax claims will be paid in full and voting rights are impaired by the plan;

• Holders of general unsecured claims will receive a pro-rata share of $1.75 million, plus the balance remaining, if any, in the committee fee account after the payment of the committee's professionals’ allowed fees and expenses charged and incurred from and after Oct. 1 through the effective date. Each holder will receive a pro-rata share of 15% of the total value of any additional assets. Voting rights are unimpaired by the plan;

• Holders of general unsecured claims of Solyndra and Wuxi will receive $216,265,149.62 for Solyndra and $144,176,766.41 for Wuxi, comprised of $143,486,112.69 for Wuxi Suntech Power Co. Ltd. and $690,653.72 for Suntech Power Asia Pacific. Also, on the effective date or thereafter Solyndra and Wuxi will receive distributions in the amounts of $6,062,500 and $4,250,000. Voting rights are unimpaired by the plan;

• Holders of allowed products liability claims will receive relief from the stays and injunctions provided for by the plan and statement, and voting rights are unimpaired by the plan;

• Holders of affiliate claims are entitled to receive 25% of any additional assets recovered by the debtors’ estates or by the post-effective date and voting rights are unimpaired by the plan;

• Holders of inter-company claims will receive no distribution and are deemed to have voted to reject the plan; and

• Holders of equity interest claims will receive all of the debtors’ remaining cash and assets, if any, after all of the distributions. Voting rights are unimpaired by the plan.

Suntech America is a San Francisco-based producer of solar panels that filed for bankruptcy on Jan. 12, 2015. The Chapter 11 case number is 15-10054.

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