Suntech’s joint provisional liquidators (JPLs) appointed by the Grand Court of the Cayman Islands to oversee the restructuring of the Company have commenced a Chapter 15 proceeding under the U.S. Bankruptcy Code in a federal court in the Southern District of New York. Under such a proceeding, the company is seeking to have recognized in the United States the Company's overseas provisional liquidation which has previously been granted in the Cayman Islands.
Mr. David Walker, one of the JPLs, said, "The Chapter 15 petition is a very important step to conclude a successful restructuring of the Company as it would allow a centralized process to assert and resolve claims against the Company, and to make distributions to the Company's creditors."
"Chapter 15 recognition will stay actions brought by creditors in the United States, and help ensure that all creditors are treated equally with similarly situated creditors in the Cayman Islands proceeding," added Mr. Walker.
As previously announced, Suntech's filing of the Chapter 15 petition by February 21, 2014 was a provision of the Restructuring Support Agreement entered into with (among other parties) the petitioners for an involuntary bankruptcy proceeding filed against it under Chapter 7 of the U.S. Bankruptcy Code.