Suntech Power Holdings Co. Ltd. has signed a forbearance agreement with the holders of more than 60% of the company's 3% convertible notes.
Under the forbearance agreement, in the event the company does not make payments due under the notes on March 15, the signing bondholders agree not to exercise their rights and the related indenture until May 15, 2013, subject to certain market-standard early termination events.
The forbearance agreement will enable Suntech to continue to work with holders of the notes with a view to achieving a consensual restructuring, the company says.
