Suntech Power Holdings Co. Ltd. says Suntech Power International Ltd. (SPI), the company's principal operating subsidiary in Europe, has been granted a ‘provisional moratorium’ for two months on creditor claims by the judicial authorities in Schaffhausen, Switzerland.
SPI had applied for the provisional moratorium as a result of over-indebtedness, a requirement under local law and regulations. The majority of SPI's debt is Suntech inter-company debt.
The court has appointed an administrator to assess SPI's financial condition and the prospects of reaching a composition agreement with creditors to restructure SPI's outstanding debt. SPI says it will continue its operations and serve its European customers during this period.
Other than the insolvency and restructuring of Suntech Holdings' Chinese subsidiary Wuxi Suntech Power Co. Ltd. and the SPI composition proceedings, Suntech Holdings is not aware of any similar proceedings regarding any of its other entities.