The administrator of Suntech Power International Ltd. (SPI), Suntech Power Holdings' principal operating subsidiary in Europe, has called for a meeting to consider a proposed dividend agreement to resolve the claims of SPI's creditors.
Under Swiss law, such agreement would be approved if either the majority of creditors by number representing two-thirds of the claim amounts or one-fourth of creditors by number representing at least three-fourths of the claim amounts consent to such agreement. In the event, which will be held on June 10th, SPI's creditors approve the agreement, such agreement is also subject to final approval by the court in Schaffhausen, Switzerland.
Mr. Michael Nacson, chairman of the board of the Company, said, "After tremendous effort among the board of SPI, the major creditors of SPI, and the Swiss administrator in the restructuring process, we are pleased they have been able to come to an arrangement that can be put forth to all creditors of SPI." Mr. Nacson added, "The successful conclusion of the definitive moratorium granted to SPI in Switzerland would be a tremendous milestone in our continued efforts to restructure the Company."
As previously announced, SPI had been granted a definitive moratorium from the judicial authorities in Schaffhausen, Switzerland to allow time to restructure its debt and reach an agreement with its creditors.