Suntech Power Holding Co. Ltd. received a notice of default yesterday from its trustee handling their $541 million in bonds outstanding. According to the bond trustee, the cutoff date to redeem the notes has already passed according to reliable sources knowledgeable of the matter.
This is a first for a mainland Chinese company. The move allows bondholders to file suit against the Chinese company in the courts of United States as reported by sources who request anonymity because information is not made public at present time. The holders of sixty three percent of shares with Suntech confirmed that they would put the claim on hold for two months until the 15th of May to exercise their rights.
In a statement released by its Shanghai public relations adviser Weber Shandwick of Suntech said, "We believe it is in the best interests of all of our bondholders to come to a consensual restructuring and encourage bondholders that are not signatory to the agreement to join this process."
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