Thursday, March 7, 2013

"Suntech Sued by Bank of China Over Loan Dispute, Herald Says" ($STP)

Latest Bloomberg story.

8 comments:

Walter said...

The "board of seven Chinese lenders... to cope with Suntech’s debt due to mature" just wanted to roll over the bank loans? Not help pay off the notes. If that's the case, the article mentioning the notes in the next sentence is kind of misleading...

CP said...

Are you able to read Chinese?

Seems like the article may have been wrong/misleading. Also, even if there is an exchange offer, there's no reason to expect it to be good for the equity.

Telling that the bonds have traded down to 35.

Walter said...
This comment has been removed by the author.
Walter said...

No, I can't read Chinese (despite being Chinese). I can ask my friend though. What Chinese source are you looking at? And the bonds even hit 30 at one point today.

CP said...

This is the article that implies a debt equity swap: http://www.solarzoom.com/article-25848-1.html

It would now be almost impossible to get it done before next Friday. So they are likely to miss the maturity.

CP said...

Would the Chinese have waited this long if there was going to be a bailout?

Walter said...

Oh that article. My Chinese-reading friend says the article is saying the deal isn't final yet, since they need the banks to guarantee the bonds.

CP said...

Sounds like the bondholders are holding out for 50 cents in new guaranteed bonds, which is the same as 50 cents in cash.

Plus someone would need to come up with the money for holdouts.