Shunfeng inks preliminary restructuring deal with Suntech-sources

HONG KONG Thu Oct 24, 2013 10:49pm EDT

HONG KONG Oct 25 (Reuters) - Hong Kong-listed solar investor Shunfeng Photovoltaic International Ltd has signed a framework restructuring agreement with the debt administrator of New York-listed Suntech Power's main China unit, two sources familiar with the matter said on Friday.

Creditors of Wuxi Suntech, which has racked up total debts of $1.75 billion, will vote on the restructuring proposal at a meeting around mid-November, the sources told Reuters. They requested anonymity as they were not authorised to discuss the matter with media.

Shares of Shunfeng were suspended from trading on Friday pending an announcement related to a proposed acquisition by the company, Shunfeng said in a filing with the Hong Kong bourse.

Spokespeople for Shungfeng and Wuxi Suntech could not immediately be reached for comment.

The company, which earlier this month said it has been chosen as the preferred bidder for a stake in Wuxi Suntec, described the potential acquisition as substantial, but gave no details.

Crushed by a global glut of solar panels following the international debt crisis, Wuxi Suntech filed for bankruptcy protection in China in March, five days after its New York-listed parent company defaulted on a $541 million dollar convertible bond.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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