Suntech Power creditors hit company with involuntary Chapter 7 case

By Caroline Salls

Pittsburgh, Oct. 17 - Four Suntech Power Holdings Co., Ltd. creditors filed an involuntary Chapter 7 bankruptcy case against the company on Monday in the U.S. Bankruptcy Court for the Southern District of New York.

The petitioning creditors include Trondheim Capital Partners, LP, Michael Meixler and Longball Holdings LLC.

Those petitioning creditors hold a total of $578,231 in federal court judgment claims. Specifically, Trondheim has a $516,277 claim, Meixler has a $51,627 claim and Longball has a $10,325 claim.

Jiangsu Liquidators, LLC was also listed as a petitioning creditor on the Chapter 7 case docket.

Suntech has 21 days from the petition date to respond to the involuntary case.

As previously reported, Suntech received a notice of default and acceleration on its 3% convertible notes in connection with its non-payment of the $541 million principal amount due on March 15, 2013.

The company said the default on the notes also triggered cross defaults under its other outstanding debt, including its loans from International Finance Corp. and Chinese domestic lenders.

Several forbearance agreements were reached since the default.

One of the terms of the original forbearance agreement was that forbearing noteholders would cooperate with Suntech in addressing specified legal proceedings that may be filed against it.

Suntech is a global manufacturer and distributor of solar panels. Its headquarters are in Wuxi, China. The Chapter 7 case number is 13-13350.

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