Suntech Signs Forbearance Agreement with Convertible Note Holders

Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world’s largest producers of solar panels, today announced that it has signed a forbearance agreement with the holders of more than 60% of the Company’s 3% Convertible Notes (the “Notes”). Under the forbearance agreement, in the event the Company does not make payments due under the Notes on┬áMarch 15, 2013, the signing bondholders agree not to exercise their rights under the Notes and the related indenture until┬áMay 15, 2013, subject to certain market-standard early termination events.

The forbearance agreement will enable Suntech to continue to work with holders of the Notes with a view to achieving a consensual restructuring.

David King, Suntech’s CEO, said, “The forbearance agreement demonstrates bondholders’ support for Suntech and provides an excellent platform to further discussions towards a mutually agreeable restructuring of the Notes. We are making progress and are working to find a resolution soon. At the same time, we are continuing our cost and operational review to further improve our efficiency.”

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