Friday, October 4, 2013

"Mandarin Capital warned CDB ahead of Suntech fraud scandal" ($STP)

This came out a while ago,

"Sino-Italian PE player Mandarin Capital Partners advised China Development Bank (CDB) as early as three years ago that it shouldn't invest in Suntech Power Holdings' southern Italy initiative due to concerns about fraud. The Chinese solar company has since announced that EUR560 million ($690 million) in German government bonds it used to secure financing from CDB were apparently forgeries."

24 comments:

Anonymous said...

Looks like the bonds traded higher today

CP said...

33 whole bonds. A $10,000.00 trade.

Anonymous said...

current shares/bonds holders are out

Anonymous said...

How do you figure?


Anonymous said...

If the bid is accepted from Shengeng does the holding company declare some sort of BK or just go dark?

Anonymous said...

"Wuxi authorities said the administrators are cooperating with Shunfeng to draft a restructuring plan and would officially confirm the strategic investor after the plan is passed by creditors"

Anonymous said...

"Representatives of Suntech Holdco are engaging with the Wuxi administrator with respect to this development and how it relates to Suntech Holdco. "

Anonymous said...

Saw this posted on Yahoo msg Board:

"HOLDCO INVOLUNTARY BANKRUPTCY FILING HAPPENING TODAY/TOMORROW"

Anonymous said...

BK in USA or Cayman? What is the primary/secondary source?

Anonymous said...

The message board claims the case has been filed in the US: Southern Dist of NY case #13-13350. Anyone with access to PACER who can put up the details?

Anonymous said...

Involuntary Ch. 7 Bankruptcy against STP FILED.

Southern Dist of NY case #13-13350.

Looks like the company did not file though

Anonymous said...

Involuntary Ch. 7 Bankruptcy against STP FILED.

Southern Dist of NY case #13-13350.

Looks like the company did not file though

Walter said...

http://www.scribd.com/doc/176116672/show-temp

Anonymous said...

So the company can fight this and the equity can continue to trade at inflated values...

Unless the company enters into a scheme or arrangement or a CH 11 filing, I don't see much changing for the equity..

Will be interesting if the company even releases a PR about this.

Anonymous said...

So the company can fight this and the equity can continue to trade at inflated values...

Unless the company enters into a scheme or arrangement or a CH 11 filing, I don't see much changing for the equity..

Will be interesting if the company even releases a PR about this.

Anonymous said...

I wonder how the Wuxi Suntech creditors will react in China.

How long will it take NYSE to delist STP?

What does the timeline look like from here on out?

Anonymous said...

The NYSE can't be relied upon to delist the company. They will give the company every chance to stay listed. A hearing could take six months or longer.

Anyone know if Clearwater and Spinnaker Capital are involved in any of the restructuring discussions in Wuxi at this point? Nacson, is still the head of the board but it appears they are not privy to the information going on with the Shengeng bid and Wuxi Suntech bankruptcy proceedings.

If the bid is accepted, wouldn't Nacson have to file some type of BK for the holding co?


Anonymous said...

"The company can consent to the involuntary bankruptcy filing. When an involuntary Chapter 7 filing is made, the company can also respond with its own voluntary Chapter 11 filing and take control over the case as a debtor in possession.
To contest an involuntary petition, the company must do so within the time allotted by the Federal Rules of Bankruptcy Procedure, currently 21 days after service of the summons. Typically that involves filing an answer or a motion to dismiss."

So we should hear something by Nov 4th it seems.

Walter said...

Not sure they'd even be able to afford lawyers to contest an involuntary BK, especially if they intend to drag it out. Would just be a waste of money anyways judging by how badly the judgement hearing went.

Anonymous said...

It would cost a fortune and they would lose. Becoming judgment creditors first was clever.

Anonymous said...

NYSE is much more likely to de-list STP now that involuntary bankruptcy papers have been filed in the US.

NYSE halted STP trading when Wuxi Suntech entered bankruptcy in China.

STP originally announced that the restructuring plan contemplated entering a Scheme of Arrangements under Cayman Island law.

STP may choose not to consent to involuntary bankruptcy.

The board may pay lawyers a fixed fee to stall US bankruptcy proceedings while Wuxi Suntech assets are sold and swap takes place.

Even if STP becomes bankrupt in the US, it still would need to be declared bankrupt in Cayman court for shares to be canceled.

But maybe the ADR will be affected in the US?

Anonymous said...

At this point unless STP declares a scheme of arrangement or Ch 11 this will drag on until December and most likely into 2014..

Appears the minority bondholders don't have much pull.

Anonymous said...

Does anyone know of a public company that was forced into CH 7 BK and how the equity performed?

All signs pooint to the company ignoring the filing and it seems like the equity will too.


Anonymous said...

Suntech is a VIE

It really doesn't matter if they are are bankrupt in the US.

http://www.chinaaccountingblog.com/weblog/explaining-vie-structures.html