China-based solar firm Suntech Power Holdings has announced that it has agreed on a new forbearance agreement with the majority of the holders of the firm's 3% convertible notes, for which a principal payment of US$541 million was due on March 15, 2013. The firm noted that under the new forbearance agreement, the signing bondholders agree not to exercise their rights under the convertible notes and the related indenture until June 28, 2013, subject to certain market-standard early termination events.
David King, Suntech's CEO, said, "This new forbearance agreement demonstrates bondholders' continued support for Suntech. The agreement will enable Suntech to continue to work with bondholders towards achieving a consensual restructuring."
On May 14, the firm announced that it has received a notification from the New York Stock Exchange (NYSE) that it has failed to timely file its Form 20-F for the fiscal year ended December 31, 2012. Suntech had previously announced on May 1, 2013 that it required additional time to complete its 2012 annual report and will delay the filing beyond the deadline of April 30, 2013. According to Suntech, the firm is working diligently to complete these assessments and file restated financials for 2010 and 2011, as well as the 2012 annual report, as soon as practicable.
The NYSE has indicated that it will closely monitor the status of the firm's late filing and related public disclosures for up to a six-month period from its due date. If the firm fails to file its annual report within six months from the filing due date, the NYSE may allow the firm's securities to trade for up to an additional six months, said Suntech.
