Suntech Commences Chapter 15 Proceedings In U.S.

Posted by SI Staff on February 24, 2014 No Comments
Categories : New & Noteworthy

Suntech Power Holdings Co. Ltd. has announced that its joint provisional liquidators (JPLs) appointed by the Grand Court of the Cayman Islands to oversee the restructuring of the company have commenced a Chapter 15 proceeding under the U.S. Bankruptcy Code in a federal court in the Southern District of New York.

Under such a proceeding, Suntech is seeking to have recognized in the U.S. the company's overseas provisional liquidation that is already granted in the Cayman Islands.

‘The Chapter 15 petition is a very important step to conclude a successful restructuring of the company, as it would allow a centralized process to assert and resolve claims against the company, and to make distributions to the company's creditors," comments David Walker, one of the JPLs.

As previously announced, Suntech's filing of the Chapter 15 petition by Feb. 21 was a provision of the Restructuring Support Agreement entered into with the petitioners – among other parties – for an involuntary bankruptcy proceeding filed against it under Chapter 7 of the U.S. Bankruptcy Code.

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