Suntech Power Holdings Co., Ltd. (NYSE: STP) (“Suntech” or the “Company”) today announced that it has reached an accord with holders of a majority of the 3% Convertible Senior Notes (the “Bondholders”) for a new forbearance agreement that sets forth the next steps in the debt restructuring process. The new forbearance agreement provides further time to implement the restructuring and will expire on August 30, 2013.
In particular, the new agreement contemplates an equitization of all major debt claims held by the Bondholders. In addition, the Bondholders will nominate two additional members to the Company’s Board of Directors who will provide guidance and assist in the Company’s ongoing restructuring efforts.
In the coming weeks, the Bondholders and the Company will work toward a framework agreement regarding the specific terms of a debt restructuring and equitization. The Company and the Bondholders will also work together to identify strategic and financial investors to bring in new capital to Suntech.
David King, Suntech’s CEO said, “Through the efforts made by the Bondholders and the Company in the past months, we now have a clear path and focused work plan. The Company and the Bondholders will work closely at both the Board and operational levels in the coming weeks. We remain optimistic that a mutually acceptable consensual restructuring of the Company is achievable.”