Boston, MA 11/08/2013 (wallstreetpr) – Suntech Power Holdings Co., Ltd (ADR) (NYSE:STP) said at the Manhattan court that an involuntary bankruptcy petition against them in the United States of America could derail their restructuring efforts.
The creditors who are seeking the U.S. bankruptcy are known as a “tiny minority” holding only 0.27% of the company’s outstanding debts. This has been mentioned by the management of Suntech Power Holdings Co., Ltd in the papers filed by them yesterday in order dismiss the case.
The management of the company also said that the action taken by the creditors might derail the substantial progress which Suntech is taken in reaching a consensual restructuring with a wide array of its stake holders. This would be also including a substantial percentage of its funded debt creditors.
The American depository receipts belonging to Suntech Power Holdings Co., Ltd. fell around 30% to 88 cents recently. This was high as compared to the closing high for the entire year at $1.87.
Moreover, Trondheim Capital Partners LP, Michael Meixler and Long ball Holdings LLC have filed an unintentional petition under the Chapter 7 of the U.S. Bankruptcy Code in New York in October. They mentioned in the petition that they are holding around $578,230 in claims against the company.
But the management of Suntech said in its filing that the petitioners did not follow proper procedure. Some of the claims were also acquired before the case was started and is also a sign that they were trying to force Suntech in the U.S. bankruptcy.
Also, shares of Suntech have collapsed as the New York Stock Exchange has poised to pull plug. NYSE said that the stock of shares belonging to Suntech would be delisted prior to the opening on Monday.
