Suntech Settles Disputes Over Capital Fund That Allegedly Provided Nonexistent Bond

Posted by SI Staff on March 07, 2013 No Comments
Categories : New & Noteworthy

Suntech Power Holdings Co. Ltd. says it has settled all outstanding disputes with GSF Capital Pte. Ltd. and Javier Romero in connection with a guarantee provided by GSF Capital to Suntech.

Last year, Suntech announced it was investigating the fund for possible fraud. GSF allegedly provided a 500 million euro bond that did not exist. GSF was also later accused of building illegal solar plants in Italy in order to exploit the country's PV subsidies.

As part of the new settlement, GSF Capital will dispose of its entire ownership interest in Global Solar Fund SCA Sicar for an agreed consideration. Suntech's equity interest in the fund will increase from 79.3% to 88.15%, and the equity interest owned by Best (Regent) Asia Group Ltd., a company ultimately held by Suntech's Zhengrong Shi, will increase from 10.7% to 11.85%.Â

Due to the change of control of the fund, Suntech will consolidate the fund upon completion of the related equity transfer. In addition, the court orders obtained by Suntech will be discharged. The settlement does not involve an admission of liability on the part of GSF Capital or Romero.

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