REPLY OF THE SOLYNDRA RESIDUAL TRUST IN SUPPORT OF MOTION TO TRANSFER VENUE $STP

Motion from Solyndra in the Suntech bankruptcy case,

"Suntech commenced the Cayman Proceeding and is seeking chapter 15 recognition in New York in order to marginalize its largest creditors, the parties suing it for decimating domestic solar panel manufacturers with its illegal trade practices. It intends to compel litigants to bring their claims in the Cayman Islands where they may not have the safeguards afforded by United States bankruptcy law to ensure fair and equal treatment of disputed claims, such as claims estimation and reserve requirements, and where the right to treble damages under United States law may not be recognized. Suntech clearly perceives that this Court will be more receptive to its request to recognize the Cayman Proceeding and (if recognition is granted) will exercise its discretion over the enforcement of decrees made under Cayman Islands law in a more favorable manner than a court in the district where Solyndra and Suntech America were both based, where the litigation is pending, and where it lost its motion to dismiss Solyndra’s dumping claims."

A correspondent writes, "a zombie cage match, and a wet dream for the lawyers. For the shareholders, not so much."

I like how Solyndra refer to themselves as "largest creditors" of Suntech, as though it is a foregone conclusion that they would win a $500 million verdict.