Suntech to Appeal NYSE Determinations

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Suntech intends to appeal the decision of NYSE Regulation to commence delisting proceedings of the company’s American Depositary Shares.

Suntech (OTC: STPFQ), once the world’s largest solar panel manufacturer, has announced that it intends to appeal the decision of NYSE Regulation to commence delisting proceedings of the Suntech’s American Depositary Shares (ADSs). According to Suntech, a committee of the board of directors of the NYSE will make a final determination about Suntech’s ADSs by early 2014.

Trading of the company’s ADSs had been suspended by NYSE Regulation prior to the opening on Monday, November 11, 2013. Since that suspension, quotations of the company’s ADSs have been available on the OTC market under the symbol STPFQ.

Suntech received a letter from NYSE Regulation on November 6, 2013 stating that Suntech’s ADSs would be suspended from trading due to uncertainty over whether the company could complete its 2012 annual report within the timeframe required by the NYSE.

According to the Wall Street Journal, Suntech said last year that it was the victim of fraud involving fake German bonds pledged to the company as collateral. As a result, Suntech stopped releasing full financial results and said it would need to restate its 2010 and 2011 results. The company announced that it will release new annual reports for 2010 and 2011 in February 2014, and that it will release its annual reports for 2012 and 2013 in March 2014 and April 2014, respectively.

Suntech hasn’t been able to recover after a global glut of panels depressed selling prices, and subsidies in top European solar markets were withdrawn. Wuxi Suntech, Suntech’s main manufacturing unit, was pulled into bankruptcy proceedings by Chinese creditors in March, after the Chinese panel manufacturer failed to repay $541 million in bonds. 

The firm recently filed for provisional liquidation with the Grand Court of the Cayman Islands, where the business is incorporated. Last week, the firm announced that the court has granted Suntech’s application.

For an overview of recent developments with Suntech, please click here.