tag:blogger.com,1999:blog-1527840491496268397.post6353648724259137799..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Suntech Needs to Read Its Own Bond IndentureUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1527840491496268397.post-59029859963321594232013-03-12T15:28:00.761-07:002013-03-12T15:28:00.761-07:00Suntech Required to Make Debt Payment on Friday, B...Suntech Required to Make Debt Payment on Friday, Bondholders Say<br /><br /><br />By Ehren Goossens and Justin Doom<br /> March 13 (Bloomberg) -- Suntech Power Holdings Corp., the<br />Chinese solar-panel maker that announced a forbearance agreement<br />March 11 for $541 million in convertible debt, may be required<br />to pay bondholders who haven’t agreed to the deal.<br /> About 60 percent of the bondholders have agreed to wait<br />until May 15 before exercising their rights, the company said in<br />a statement.<br /> Some of the remaining 40 percent of bondholders said they<br />weren’t contacted by the Wuxi, China-based company about a<br />forbearance and want to be paid on schedule March 15. Suntech is<br />seeking to restructure its debt after reporting losses for the<br />past two years. It may not be able to delay the bond payments,<br />said Adam Cohen, the founder of Covenant Review, a research firm<br />in New York.<br /> The bondholders have an “absolute right” to be repaid the<br />principal when the bonds mature, Cohen said in an interview<br />yesterday. “It doesn’t matter that a majority or 60 percent<br />wants to wait 60 days.”<br /> Trondheim Capital Partners LP, a distressed-debt hedge<br />fund, owns enough of the Suntech bonds “to make it worthwhile<br />to file a petition to sue if they don’t pay us,” said Colin<br />Peterson, the Scottsdale, Arizona-based company’s managing<br />director. Suntech didn’t contact Trondheim before announcing the<br />forbearance agreement, he said.<br /> “I’m investigating what our remedies would be,” he said<br />“I think a bondholder could file for involuntary bankruptcy or<br />sue for payment.”<br /> Bondholders who haven’t signed the forbearance agreement<br />have “the right when that payment is missed on Friday to bring<br />action in state court immediately or take steps toward an<br />involuntary bankruptcy petition,” James Millar, a partner at<br />the law firm Wilmer Cutler Pickering Hale and Dorr LLP in New<br />York, said yesterday in an interview.<br /> “Every piece of information that I’ve looked at suggests<br />that they will default on Friday,” said Millar, who said he has<br />been contacted by Suntech bondholders.C.R.L.https://www.blogger.com/profile/03319370041234084112noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-68465005858327024922013-03-12T15:24:55.071-07:002013-03-12T15:24:55.071-07:00This comment has been removed by the author.C.R.L.https://www.blogger.com/profile/03319370041234084112noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-31814260589082637002013-03-11T19:37:16.313-07:002013-03-11T19:37:16.313-07:00Yep, there's no mistaking it.Yep, there's no mistaking it.CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-60774966468099106412013-03-11T16:47:52.836-07:002013-03-11T16:47:52.836-07:00Section 9.02 might be the most clear (http://www.s...Section 9.02 might be the most clear (http://www.sec.gov/Archives/edgar/data/1342803/000114554908001071/h02152asexv4w4.txt):<br /><br />Paraphrasing: Company may amend the indenture, but notwithstanding the consent of each holder of each security, it may not <br /><br />(i) change the stated maturity of the principal of, or the payment date of any installment of interest or additional interest on any Security;jHurthttps://www.blogger.com/profile/04137029150343569722noreply@blogger.com