Suntech plans to challenge involuntary Chapter 7 bankruptcy petition

By Caroline Salls

Pittsburgh, Oct. 31 - Suntech Power Holdings Co., Ltd. intends to challenge the involuntary Chapter 7 bankruptcy petition filed against it in the U.S. Bankruptcy Court for the Southern District of New York, according to a company news release.

Suntech said it has until Nov. 6 to respond to the involuntary petition, which was filed by a group of four bondholders holding a total of $1.6 million of the company's 3% convertible senior notes due 2013.

The company said the petitioning bondholders represent less than 0.3% of the total principal amount of the roughly $541 million of notes outstanding.

A judgment was entered in favor of some of the petitioning bondholders on Sept. 20 in connection with repayment of their notes. Suntech said it is appealing that judgment.

An involuntary Chapter 7 bankruptcy case was filed against Suntech, a Wuxi, China-based global manufacturer and distributor of solar panels, on Oct. 14. The Chapter 7 case number is 13-13350.

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