tag:blogger.com,1999:blog-1527840491496268397.post7804696694677889446..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: 95 Suntech Power Posts ($STP)Unknownnoreply@blogger.comBlogger29125tag:blogger.com,1999:blog-1527840491496268397.post-42926860969069710032013-09-12T20:03:44.621-07:002013-09-12T20:03:44.621-07:00Suntech Power Holdings Co. (STP) noteholders won a...Suntech Power Holdings Co. (STP) noteholders won a court ruling on their claim for $550,000 in defaulted debt owed by the Chinese solar-cell maker, a lawyer for the investors said.<br /><br />U.S. District Judge Robert Patterson Jr. granted the investors’ motion for summary judgment today at a hearing in Manhattan, Jay Teitelbaum, a lawyer for Trondheim Capital Partners LP and Michael Meixler, said in a phone interview.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-51467408304066278122013-09-12T18:46:00.163-07:002013-09-12T18:46:00.163-07:00http://www.bloomberg.com/news/2013-09-13/suntech-n...http://www.bloomberg.com/news/2013-09-13/suntech-noteholders-win-ruling-on-claim-lawyer-says.html<br /><br />- BWKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-53426154902005068012013-09-12T16:24:41.020-07:002013-09-12T16:24:41.020-07:00Is there a link?
Will be interesting to see if th...Is there a link?<br /><br />Will be interesting to see if the company takes this seriously?noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-78935733436042364702013-09-12T15:16:53.501-07:002013-09-12T15:16:53.501-07:00STP has already sold most--if not all--of its US a...STP has already sold most--if not all--of its US assets (in Arizona). So if Trondheim and Miexler were made lien-holders by a US judgement ruling, then both can jointly file a lawsuit against Suntech Holdings to establish their lien against assets in Cayman courts. Other US bondholders can also follow this path and join the Cayman lawsuit. If Suntech is unable to settle or pay its debts in full, then Suntech Holdings will wind up in Compulsory Insolvency.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-27366568471793824212013-09-12T14:05:18.232-07:002013-09-12T14:05:18.232-07:00it looks like Trondheim won the case and can begin...it looks like Trondheim won the case and can begin seizing assets in the US. The only way STP and the other creditors can stop it is to enter into a voluntary BK and restructure the debts there. Perhaps the time-line has finally started to accelerate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-90449382101802659772013-09-12T12:39:14.847-07:002013-09-12T12:39:14.847-07:00Heavy volume today...Heavy volume today...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-61709536621261560722013-09-12T08:52:29.350-07:002013-09-12T08:52:29.350-07:00The judge just said he knows the name partner of S...The judge just said he knows the name partner of Suntech's law firm and that he wouldn't approve of this dishonorable defense by the attorney representing Suntech.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-11627451484039146782013-09-12T08:51:15.808-07:002013-09-12T08:51:15.808-07:00Any news on the hearing this morning?Any news on the hearing this morning??noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-40354592414610005402013-09-11T20:57:10.300-07:002013-09-11T20:57:10.300-07:00Here's the real question: why has the company ...Here's the real question: why has the company never been able to explain what is going on behind the scenes?<br /><br />Answer that and you answer everything.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-71746118465019109922013-09-11T20:10:25.037-07:002013-09-11T20:10:25.037-07:00Hilarious! See, they've gotten caught long the...Hilarious! See, they've gotten caught long these and don't know what to do. <br /><br />Can you say "thesis creep"? <br /><br />When they bought the bonds, the stock was trading at $10-20 per share. <br /><br />Yet the hold on to the bonds all the way through a solar industry collapse, a share price collapse below a dollar, uncomfortable news about the GSF fraud in Italy, and even worse allegation that Shi looted the company with a bogus supply company.<br /><br />They hold on because they expect a bailout. Then March 15 comes and there's no bailout!<br /><br />What's the thesis now? How many iterations have there been?<br /><br />Investing 101:<br /><i>"we try to be diligent in avoiding thesis creep – buying something for reasons X, Y and Z and then holding it six months later for reasons A, B and C"</i><br />http://www.valueinvestorinsight.com/12_06Trial.PDFAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-34915299475180568542013-09-11T19:47:59.408-07:002013-09-11T19:47:59.408-07:00Clearwater Distressed Funds Buy Chinese Solar Conv...<i><a href="http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXn38PFhAAdQ" rel="nofollow">Clearwater Distressed Funds Buy Chinese Solar Convertible Bonds</a><br />By Bei Hu - April 22, 2009 22:33 EDT<br /><br />April 23 (Bloomberg) -- Clearwater Capital Partners LLC, a New York-based manager of $1.7 billion in Asian distressed assets, bought “a substantial amount” of Chinese solar companies’ convertible bonds as prices for the notes plunged.<br /><br />“These guys are going to own the solar industry worldwide,” Clearwater co-founder Robert Petty said in an interview at the GaimAsia 2009 conference in Hong Kong yesterday. The bonds “are trading at distressed prices. You can buy debt with equity-like returns.” <br /><br />“Everybody was into solar two years ago, exactly where you were not supposed to be,” said Petty. “Now it’s where you are supposed to be.” <br /><br />“We have not been really excited about China until six months ago,” he added. “China is really interesting now.”</i>CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-53480615318385032202013-09-11T19:45:00.303-07:002013-09-11T19:45:00.303-07:00Assuming liquidation happens.. What is the timelin...Assuming liquidation happens.. What is the timeline??noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-81533341371327130092013-09-11T15:05:03.285-07:002013-09-11T15:05:03.285-07:00Well Clearwater originally bought the notes thinki...Well Clearwater originally bought the notes thinking they will get bailed out. You can google the news articles. They sound like a moral hazard investor with no real insight. <br /><br />So now that they have tripped over their dick buying holdco notes with no claim on anything, they don't want to admit to their PEs what a big hit they are taking. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-73850858361771336932013-09-11T14:29:44.326-07:002013-09-11T14:29:44.326-07:00Why would Clearwater and Spinnaker capital get inv...Why would Clearwater and Spinnaker capital get involved if they knew the PRC banks would just want liquidation?<br /><br />?noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-67751196969648631392013-09-11T12:51:01.860-07:002013-09-11T12:51:01.860-07:00Agree with the 12:34 post by anonymous.
Why would...Agree with the 12:34 post by anonymous.<br /><br />Why would the Chinese banks agree to take less money to benefit the subordinated holdco bonds? That has never made any sense.<br /><br />It's long past time for this thing to get liquidated. The pretend game is just diminishing the already small proceeds for bondholders. Wasting money on salaries, legal fees, opportunity cost...CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-65208870183216062782013-09-11T12:34:25.365-07:002013-09-11T12:34:25.365-07:00Suntech Holding's main operating subsidiary, W...Suntech Holding's main operating subsidiary, Wuxi Suntech, was forced into bankruptcy in China on March 20. If 4 of the 7 Wuxi Suntech creditors do not agree on a plan for Wuxi Suntech to exit bankruptcy by Sept 20, then Wuxi Suntech will be liquidated. If Wuxi Suntech gets liquidated in China on Sept 20, then Suntech Holdings' board would be required to wind up STP under Cayman law.<br /><br />People are giving too much attention to the agreement which STP's board + Wuxi administrator is trying to reach with (some) bondholders.<br /><br />Irrespective of whether the bondholders and STP reaches an agreement, STP will need reach a separate agreement with the 7 PRC bank creditors who forced Wuxi Suntech into bankruptcy by Sept 20th on how Wuxi Suntech will exit bankruptcy or else Wuxi Suntech will be liquidated.<br /><br />All 7 PRC banks "are pressing for full payment" yet might only recuperate 25% of their secured loans if assets are liqudiated (according to FT).<br /><br />All 7 PRC banks are overexposed to credit defaults.<br /><br />All 7 PRC banks would presumably prefer the liquidity a liquidation would bring over more short-term debt extensions and long-term write downs.<br /><br />Even though Suntech would presumably prefer to restructure Wuxi Suntech's debt with lenders, it is unable to make payments and it will be very difficult for it to avoid a liquidation in China.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-68660801941909326662013-09-11T12:26:49.735-07:002013-09-11T12:26:49.735-07:00It would be hard to wipe out the amount of liabili...It would be hard to wipe out the amount of liabilities that they want to wipe out without an insolvency proceeding somewhere.<br /><br />Also, there's no stay of litigation in the U.S. unless an insolvency proceeding (7, 11, or 15) is filed here.<br /><br />There is also no avoidance of U.S. judgments unless it's a 7 or 11 plan here.CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-88131357396294839252013-09-11T12:19:56.582-07:002013-09-11T12:19:56.582-07:00So even if they decide to restructure, they will ...So even if they decide to restructure, they will file for BK before the actually restructuring takes place? <br /><br />So either way we should see a BK filing no later than Sept 20th? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-69949167338872892242013-09-11T12:07:08.672-07:002013-09-11T12:07:08.672-07:00They will pretty much have to file BK in some juri...They will pretty much have to file BK in some jurisdiction in order to wipe out earlier liabilities: warranty claims, the securities fraud lawsuit, the shareholder derivative lawsuit, holdout bondholders, etc. CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-61318553006860962792013-09-11T11:58:35.459-07:002013-09-11T11:58:35.459-07:00There's no statutory minimum time period for a...There's no statutory minimum time period for a receiver to be appointed. All it would take would be to convince the judge that the assets are in danger of dissipating. The company's (and its directors) admissions regarding fraud and insolvency would work wonders.<br /><br />Once bondholders win, they can also start hitting everyone involved in this mess with information subpoenas too. Where did the money go? There must be tons of people who know. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-82221277662493644782013-09-11T11:26:14.559-07:002013-09-11T11:26:14.559-07:00So essentially there are two options now.
1. The...So essentially there are two options now. <br /><br />1. They agree to restructure and this drags on a few more months. Likely to the end of 2013 as they need approval from shareholders/bondholders, etc. <br /><br />2. The Chinese banks/goverment do not wish to restructure and instead decide to liquidate in one form or another. If this is the case, this should be done within a month and company should be in BK in the Cayman Islands. <br /><br />"Any updates from the Chinese banks as to whether they prefer the proposed scheme of arrangement or a liquidation?" is the key question then. <br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-17710571591248508442013-09-11T10:25:52.138-07:002013-09-11T10:25:52.138-07:00Why would they file for BK if they are in the midd...Why would they file for BK if they are in the middle of working out a deal with bondholders to convert the debt to equity??noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-26870824996703287982013-09-11T10:05:41.232-07:002013-09-11T10:05:41.232-07:00Even if a summary judgement ruling were to establi...Even if a summary judgement ruling were to establish a lien in the US, it would take >11 days for a "Foreign Representative" to be appointed and for insolvency proceedings to begin in the Cayman Islands or for a receiver to be appointed in the USA.<br /><br />The "understanding" announced was between the bondholder working group and the company (bondholder appointed chairman + wuxi suntech administrator), but the plan did not contain anything to meet the needs of Wuxi Suntech's creditors (PRC banks who have secured claims against Suntech's main financial and operating assets).<br /><br />The FT reported last month that "'the Chinese banks are pressing for full payment and want the Wuxi government to bail them out,' one person familiar with the matter said." http://www.ft.com/intl/cms/s/0/d6d5fb62-fb8d-11e2-8650-00144feabdc0.html<br /><br />Any updates from the Chinese banks as to whether they prefer the proposed scheme of arrangement or a liquidation?<br /><br />We will get the news within a week or so.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-56964385076317688222013-09-10T19:04:13.680-07:002013-09-10T19:04:13.680-07:00Remember a federal judge could appoint a receiver ...Remember a federal judge could appoint a receiver over the company. <br /><br />They are really playing with fire by not settling or filing a voluntary BK now.<br /><br />Remember the plaintiff nominates a receiver. What if there was a receiver who crowd-sources a review of the internal emails, to find out whether any of the management was negligent?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-53981825622205202842013-09-10T19:00:04.185-07:002013-09-10T19:00:04.185-07:00Hmmm
Will the summary judgement in the US be of a...Hmmm<br /><br />Will the summary judgement in the US be of any consequence then?<br /><br />What was the point of the restructure PR if odds are against that outcome?Anonymousnoreply@blogger.com