Thursday, January 9, 2014

"Mr. Zhou cited personal reasons for his departure."

"Suntech Power Holdings Co., Ltd. (OTC: STPFQ) (the "Company" or "Suntech") today announced that on January 7, 2014, Mr. Weiping Zhou resigned as a director of the Company, interim Chief Executive Officer, interim Chief Financial Officer, and President with immediate effect. Mr. Zhou cited personal reasons for his departure. Suntech plans to announce new management pending final review by Suntech's board of directors and Joint Provisional Liquidators (JPLs)."


Anonymous said...

Mr. Zhou used to work for Guolian and was assigned by Wuxi government as CEO of Suntech Holding back in 2013. It is interesting to note that Wuxi Suntech administrator and court also stated on Jan. 7th that Suntech Japan and Singapore transfer is legal and properly done. Does this mean that Suntech liquidator and Wuxi court/government's conflict have escalated to such a level that Zhou had to leave? If so, it seems that Guolian's proposed investment in Suntech holding will not be possible because Guolian is owned by Wuxi government.

This new management change can also negatively impact 1/30 Chapter 7 hearing and NYSE delisting appeal.

Does it explain the unusual millions of bond activities on 1/7? Someone knew this then?

Any thoughts?

Anonymous said...

Shunfeng already voted and approved issuing new shares for Wuxi Suntech takeover. No Suntech liquidator objection announcement issued.

Does that mean Suntech liquidator totally give up? If so, Suntech shareholders & bondholders are really screwed?

Anonymous said...

The JPLs will likely publish a press release after hours or over the weekend.

If the US creditors with judgement rulings would like to force Suntech into a compulsory liquidation in the Cayman Islands, all they need to do is file the paperwork which asserts that following the Wuxi STP divestment, the holding company now most certainly is balance sheet insolvent and should be struck off the register.

I imagine it would be personally difficult for Mr. Zhou to work with people who did not object to the sale of Wuxi Suntech until the day the sale was approved by all of Wuxi Suntech's creditors in court.

Even lawyers at the firm which Suntech Holdings retained in the New York chapter 7 proceedings said that Suntech would be unable to reclaim assets which had been transferred from PSS in the BVI to the Wuxi administrator in the PRC.

The restructuring deal is dead for a number of reasons:
1. Guolain only put $150 million on the table when the Restructuring Framework Agreement requires at least $160 million equity to be raised.
2. Some of the conditions for the conditional Guolain investment to be made are that Suntech must remaining on the NYSE, restate prior financials, which would also require due diligence.
3. Most importantly, Guolain will not make the equity infusion (according to the RFA) unless Suntech arranges for new debt facility of $240 million (which will be nearly impossible for Suntech considering its creditworthiness).

I doubt there is any way for Suntech to find a strategic investor now.

Anonymous said...

Are the only people left on the board Nacson and Metzger who were appointed by Clearwater and Spinnaker? One of them would likely fill the role of Zhou.

The working creditor group is in no rush to end this and will use the legal system to extend and pretend in hopes of getting something out of this.

Anonymous said...

Crooked founder Shi is still on the board!

Anonymous said...

Why do the bonds still trade with so much value? Is there any left?

Anonymous said...

The bonds value STPFQ at about $50 million. And the current market capitalization is $100 million. That's why STPFQ is a credit bubble stock!

CP said...

Very good. That's exactly why it's a credit bubble stock.