Suntech subsidiary to receive $263.91 million payment under judgment

By Caroline Salls

Pittsburgh, Feb. 10 - Suntech Power Holdings Co., Ltd. immediate subsidiary Power Solar System Co., Ltd. will receive a $263.91 million payment plus interest at 5.33% from Suntech Power Investment Pte., Ltd. in connection with a judgment from the High Court of the Republic of Singapore, according to a news release.

Suntech said Power Solar issued a writ of summons last month in the Republic of Singapore against Suntech Power Investment for an outstanding balance of $263.91 million due from Suntech Singapore.

The company said Suntech Singapore failed to enter an appearance within the required time frame required for them to do so.

As a result, the court entered the judgment in default of appearance against Suntech Singapore.

"We are pleased to have the judgment in our favor and will take further steps to enforce our rights against Suntech Singapore," Power Solar liquidator John Ayres said in the release.

"It is the first of many steps being taken by the liquidator to maximize the recovery for the creditors.

"The recovery actions will continue with focus on an investigation of the purported transfer of equity interest of Suntech Power Japan Corp. and Suntech Singapore to Wuxi Suntech Power Co., Ltd. and the purchase of [Power Solar's] equity interest in Wuxi Suntech by Jiangsu Shunfeng Photovoltaic Technology Co., Ltd., a subsidiary of a Hong Kong listed company Shunfeng Photovoltaic International Ltd."

An involuntary Chapter 7 bankruptcy case was filed against Suntech, a Wuxi, China-based 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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