Creating Personalized Solutions

We use our skill and experience to help each client secure the best available resolution to their situation.

Suntech facing Chapter 7 filing

A series of unpaid loans has left the world's largest producer of solar panels in a precarious position, according to business news. Michigan residents interested in sustainable energy may be aware of Suntech Power Holdings, a company best-known for producing the large-scale panels vital to solar power production. Several of the company's bondholders are pushing for a Chapter 7 filing in order to recover their invested funds.

Court filings indicate that several bondholders, including Trondheim Capital, are in the process of seeking repayment on investments totalling roughly $580,000. It is unknown at this time what the company's assets total. It has been confirmed, however, that Suntech defaulted earlier this year on a $541 million convertible note. As a result, bondholders have banded together to demand a potential Chapter 7 filing on the part of Suntech.

As many Michigan business owners are aware, a Chapter 7 differs from its Chapter 11 counterpart. The latter is a restructuring move designed to allow the owners of the company to retain control of it while debt restructuring occurs. A Chapter 7, however, is commonly termed a "wind-up" move that signifies a company closing its doors and liquidating its assets to satisfy bondholders and other creditors.

While it has not yet been determined whether Suntech will declare Chapter 7 bankruptcy in the face of its creditors, it would be hasty to presume such a move is a negative one on the part of the company. Indeed, a Chapter 7 filing can serve to free the owners from the fiscal anchor weighing them down. This will allow them to move forward debt-free into the business world and try their hand at their chosen field once again.

Source:, Suntech bondholders seek Chapter 7 bankruptcy proceedings to return funds, Mark Osborne, Oct. 15, 2013

No Comments

Leave a comment
Comment Information