Friday, November 8, 2013

What Wuxi Suntech Creditors Are Receiving $STP

A correspondent who has seen the Chinese document from the Wuxi restructuring writes in,

This is the Wuxi Suntech's proposal for their creditors:
-  Any amount under 100k RMB will be repaid in full.  For amounts over 100k RMB, the creditor can choose from one of the following options:
1)  Cash at a rate of 31.55% of the claim
2)  Cash and Account Receivable.  The cash amount is 30.85% and there are 9 AR's that the creditor can claim.  The estimated recovery will be an additional 0.94%

-  The default option is option 1
-  If you pick option 2, the creditor will have to go after the AR himself.
-  Cash portion will be paid within 40 days of court approval
-  AR within 3 months.
The delay this whole time must have been about stuff like making the little creditors (less than $16,400) whole.

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