Wednesday, November 6, 2013

NYSE to Suspend Trading in American Depositary Shares of Suntech Power Holdings Co., Ltd. and Commence Delisting Proceedings $STP

Update from the NYSE just posted.

"NEW YORK, November 6, 2013 – The New York Stock Exchange ("NYSE") announced today that the staff of NYSE Regulation, Inc. ("NYSE Regulation") has determined to commence proceedings to delist the American Depositary Shares of Suntech Power Holdings Co., Ltd. – ticker symbol STP – from the NYSE. Trading in the Company's American Depositary Shares will be suspended prior to the opening on Monday, November 11, 2013.

NYSE Regulation notes that there is uncertainty about the Company’s ability to complete its Form 20-F for the fiscal year ended December 31, 2012 within the timeframes required under NYSE Listed Company Manual Section 802.01E, in light of the ongoing restructuring involving the Company and various of its significant operating subsidiaries and the fact that the Company is also in the process of restating of its previously issued December 31, 2010 and 2011 financial statements. NYSE Regulation also considered the uncertainty surrounding the aforementioned restructuring process on the holders of the Company’s American Depositary Shares, pursuant to NYSE Listed Company Manual Section 802.01D.

NYSE Regulation notes that it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in light of all pertinent facts and circumstances whenever it deems such action appropriate. In addition, NYSE Regulation may, at any time, suspend a security if it believes that continued dealings in or listing of the security on the NYSE are not advisable.

The Company has a right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. Application to the Securities and Exchange Commission to delist the issue is pending the completion of applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision."

17 comments:

Anonymous said...

Will be interesting to see if STP decides to appeal the decision

Anonymous said...

They seem to like to appeal everything.

But good luck appealing to the same entity that made the decision.

Anonymous said...

What does this mean for my puts? Will I have to sell them before the delisting?

Aharon said...

@Anonymous: You can still hold your puts; the deliverable in the contract doesn't/shouldn't change. That said, thing can get hinky, especially if it's suspended. I had to fight a little with my broker to get CCME puts provisionally exercised while trading in the stock was suspended (and then I had to pay margin without knowing when it wouldn't be relisted on the pinks); he originally said, "Well, sure I know these are rights to sell at $20 and it'll probably trade below $1.00, but who cares?" (I did). Depends on what your aggravation tolerance is.

Aharon said...

@me: I mean borrow, not margin.

John said...

"That said, thing can get hinky, especially if it's suspended. "

After STP is delisted on Monday, wouldn't the stock start trading otc sometime next week?

Anonymous said...

“Trading in the Company's American Depositary Shares will be suspended prior to the opening on Monday, November 11, 2013. “

- So trading will be suspended prior to Monday opening.

- The NYSE will then “commence proceedings to delist the American Depositary Shares of Suntech Power Holdings Co., Ltd. – ticker symbol STP – from the NYSE.” During this time they can appeal.

Anonymous said...

The NYSE delisting procedure stated here seems to imply the stock will be suspended for at least 10 business days (during which time, Suntech may appeal).

http://nysemanual.nyse.com/lcm/Help/mapContent.asp?sec=lcm-sections&title=sx-ruling-nyse-policymanual_804.00&id=chp_1_9_4

On another note, did they respond to the chapter 7 petition today?

Anonymous said...

Also worth noting: "the SEC requires companies to be current in their filings before their stock can be quoted on the OTCBB."

http://www.sec.gov/answers/listing.htm

Since this appears impossible for Suntech, the stock may not trade again after Friday.

CP said...

Aharon,

Can you tell us more about your experience with CCME? How long did it take, what happened, etc?

Adam said...

THanks for your help with this investment. Please send me your info, and I'll be happy to order you a bottle of wine.

Anonymous said...

It can trade at the pink sheets where there are no requirements.

Aharon said...

@Adam:

I had a half-dozen phone calls back and forth as expiration loomed, speaking to a junior and then not so junior person at my brokerage. I basically pulled up the OCC language on expiration of options in suspended stock. Can't recall quite what it said, but basically that you can exercise provisionally (I think there's some leeway for the broker to refuse, but I didn't highlight this).

Since I was exercising and had no underlying, I then had to borrow the stock, which was the broker's main issue, but they found some and I paid whatever the last borrow cost was until it traded again--around 5 weeks later, as I recall (the suspension lasted for a few months, I think). I bought to cover on the first day it traded again on the Pinks; there wasn't much of a squeeze, maybe because the stock seemed worthless, and I wanted to put the whole chapter behind me and book the gain.

It really wasn't difficult; maybe a half hour of work. But still nerve wracking when the initial response is, "Oh, sorry, you'll have to eat that twelvefold gain because we don't feel like looking something up."

Hope that helps!

Aharon said...

@CP: Whoops, I mean @CP.

@John: It most likely will start trading OTC, but there's no requirement it do so. It's a big enough issue that I'm sure some market maker will grab it, but that's not guaranteed...

That said, yeah, I imagine it'll be on the Pinks next week.

Anonymous said...

- Thoughts on the bankruptcy.

If you bought/acquired/assigned bonds that were in default - bond holders should have been paid on March 31. Knowing that the chances of being paid by the company is zero, filing for an involuntary bankruptcy is a prudent thing to do. The big owners of the bonds are in bed with STP owners in China and are given special treatment and favors.

CP said...

Securities and Exchange Commission v. China MediaExpress Holdings, Inc. and Zheng Cheng, Civil Action No. Civil Action No. 1:13-cv-00927 (D.D.C.)
SEC Charges China-Based Company and CEO in Latest Cross-Border Working Group Case

http://www.sec.gov/litigation/litreleases/2013/lr22731.htm

CP said...

aharon-

http://www.creditbubblestocks.com/2013/11/blog-commenter-on-his-experience.html