Suntech provisional liquidators to investigate share disposal rights

By Caroline Salls

Pittsburgh, Nov. 13 - Suntech Power Holdings Co. Ltd.'s joint provisional liquidators will investigate the Suntech group's rights related to the transfers and disposals of shares of Suntech Power Japan Corp. and Suntech Power Investment Pte. Ltd. to Wuxi Suntech Power Co., Ltd. made in connection with an intragroup debt restructuring, according to a PricewaterhouseCoopers news release.

As previously reported, David Walker and Ian Stokoe of PricewaterhouseCoopers have been appointed as Suntech's joint provisional liquidators.

According to the release, Suntech Japan and Suntech Singapore were owned by Power Solar System Co., Ltd., an immediate subsidiary of Suntech Power.

The liquidators said Power Solar may be insolvent under the laws of the British Virgin Islands, meaning the share disposals may be voidable under British Virgin Islands law.

The liquidators said they are also aware of a Hong Kong Stock Exchange announcement made by Shunfeng Photovoltaic International Ltd. on Nov. 1 in connection with its proposed purchase of the entire equity interest of Wuxi Suntech by subsidiary Jiangsu Shunfeng Photovoltaic Technology Co., Ltd.

Power Solar is the 100% shareholder of Wuxi Suntech, and any transfer or disposal of Wuxi Suntech's shares requires its written agreement and consent, the release said.

The liquidators said Suntech Power has instructed the directors of Power Solar that they are not authorized to transfer or otherwise dispose of any Power Solar assets without the written approval of the joint provisional liquidators, including any transfer or disposal of the shares of Wuxi Suntech.

As of Nov. 11, the liquidators said they had not approved any transfer or disposal of the Wuxi Suntech shares to Jiangsu Shunfeng Photovoltaic Technology Co., Ltd. or any other company or entity.

In the release, the liquidators reserved all of their rights against anyone who may have participated in or facilitated any transfers or disposals of the shares of Suntech Japan, Suntech Singapore and/or Wuxi Suntech and any potential subsequent transfer of those shares.

An involuntary Chapter 7 bankruptcy case was filed against Suntech, a Wuxi, China-based global manufacturer and distributor of solar panels, on Oct. 14 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 7 case number is 13-13350.

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