Thursday, May 2, 2013

Suntech Power Delays Filing Annual Report, Announces Updates

From yesterday's news release.

"The Company continues its discussions with major holders of the Notes with a view to achieving a consensual restructuring. Suntech previously received a notice of default and acceleration relating to Suntech’s non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. Suntech has entered into a forbearance agreement with holders of over 60% of the Notes under which the signing bondholders agree not to exercise their rights under the Notes and the related indenture until May 15, 2013, subject to certain market-standard early termination events."
Totally amazing. The bonds are now trading at about 27, a market value of $146 million and implying a loss of $395 million for bondholders. Meanwhile, the company market capitalization is $120 million!

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