Suntech and bondholders' new forbearance calls for claim equitization

By Caroline Salls

Pittsburgh, June 28 - Suntech Power Holdings Co., Ltd. secured a new forbearance agreement from holders of a majority of its 3% convertible senior notes that sets the next steps in the company's debt restructuring process, according to a news release.

Specifically, the company said the new agreement calls for an equitization of all major debt claims held by the bondholders.

In addition, the bondholders will nominate two additional members to Suntech's board of directors to provide guidance and assist in the company's ongoing restructuring efforts.

In the coming weeks, the bondholders and the company will work toward a framework agreement regarding the specific terms of a debt restructuring and equitization and will work together to identify strategic and financial investors to bring in new capital to Suntech.

The new forbearance agreement, which gives Suntech more time to implement the restructuring, expires on Aug. 30.

"Through the efforts made by the bondholders and the company in the past months, we now have a clear path and focused work plan," Suntech chief executive officer David King said in the release.

"We remain optimistic that a mutually acceptable consensual restructuring of the company is achievable."

Suntech is a Wuxi, China-based solar panel producer.

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