Suntech convertible bondholders agree to new forbearance till June 28

By Marisa Wong

Madison, Wis., May 16 - Suntech Power Holdings Co., Ltd. said it has agreed on a new forbearance agreement with the majority of holders of its 3% convertible notes, for which a principal payment of $541 million was due on March 15.

Under the new forbearance agreement, the signing bondholders agree not to exercise their rights under the notes until June 28, subject to some market standard early termination events.

Suntech chief executive officer David King said in a press release, "This new forbearance agreement demonstrates bondholders' continued support for Suntech. The agreement will enable Suntech to continue to work with bondholders towards achieving a consensual restructuring."

The solar panel producer is based in Wuxi, China.

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