| March 15
March 15 Suntech Power Holdings Co Ltd
bondholder Trondheim Capital Partners LP said it would sue the
Chinese solar panel maker if it failed to make a principal
payment on $541 million of bonds due on Friday.
Trondheim Capital Managing Director Colin Peterson declined
to disclose the exact size of the hedge fund's holding, but told
Reuters it was enough to make it worthwhile to sue.
"The first step is to sue when a company misses its bond
maturity," Peterson said.
Trondheim Capital, based in Scottsdale, Arizona, invests in
Suntech said on Thursday it would continue to work with its
lenders on restructuring the debt, but had no plans to make
Suntech was not immediately available for comment on Friday.
The company said on Monday that holders of more than 60
percent of the 3 percent convertible notes had agreed not to
exercise their rights until May 15.
A group of bondholders represented by Bingham McCutchen LLP
and Duff & Phelps Securities LLC said on Friday that a
consensual restructuring that would maximize recoveries for all
noteholders was attainable.
Analysts and investors have previously said it was unlikely
that Suntech had enough cash to pay off the remaining 40 percent
The government of the city of Wuxi, the solar technology
hub where Suntech is based, has been in talks with the company
regarding a bailout, people with knowledge of the matter told
Reuters earlier this week.
Suntech shares were up 25 percent at 84 cents by afternoon
trade on the New York Stock Exchange.
"I don't think it will last. (Suntech) is no longer
investable for anyone except extremely short-term investors,"
Raymond James analyst Pavel Molchanov said.
"But volatility is to be expected until there is more
clarity on how the Wuxi government's effective takeover of the
company will work."
A Chinese government bailout would not help the convertible
bondholders as China-based lenders have the first right to the
assets, said Himanshu Shah, chief investment officer of Shah
Capital. The firm exited Suntech in early January.
(Editing by Sriraj Kalluvila)