Dallas, Texas 11/14/2013 (Financialstrend) – Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP) shed over 66% during last five trading sessions pressing its market cap to $90.44 million. The stock slumped on concern that it will not be able to pay back overseas bond-holders.
Suntech Power Holdings Co., Ltd. (NYSE:STP)’s China unit entered bankruptcy earlier this year in March and this week the company filed for a provisional liquidation in Cayman Islands while asking for protection in the U.S. Its restructuring plan basically comprises debt for equity swap and the entry of a strategic investor.
Earlier this month, Shunfeng Photovoltaic International Ltd, Changzhou based investment holding company, said in a filing that it agreed to buy Suntech Power Holdings Co., Ltd. (NYSE:STP)’s main unit for $492 million.
Cayman Islands Proceedings
One of the world’s largest solar companies, Suntech Power Holdings Co., Ltd. (NYSE:STP) recently announced that its application for a provisional liquidation has been granted by the Grand Court of the Cayman Islands. Restructuring professionals from PricewaterhouseCoopers, selected by the company, have been appointed to work with its Board of Directors to progress a restructuring of the company.
The company and its Board of Directors appointed the restructuring professionals with the consent and support with the primary goal of achieving Suntech Power Holdings Co., Ltd. (NYSE:STP)’s restructuring in the best interest of all stakeholders. The restructuring professional will start working with the company immediately.
Wuxi, China based Suntech Power Holdings Co., Ltd. (NYSE:STP)’s stock traded flat on Wednesday, gaining 0.02% to close at $0.5. The stock traded with volume of 2.36 million shares against its 30 day average volume of 5.42 million shares. The 52 week price ranges between $0.45 and $0.65.
The stock of Suntech Power Holdings Co., Ltd, is now trading in OTC markets and its ticker has been changed from NYSE:STP to OTCMKTS:STPFQ.