Suntech Subsidiaries Clash In US$264 Million Court Ruling
Suntech Singapore has been ordered to pay Suntech Power Holdings’ immediate subsidiary Power Solar System (PSS) nearly US$264 million.
The court in Singapore made the award to PSS on Monday after its liquidators claimed it was owed US$263,910,599 plus 5.33% interest and costs. Suntech Singapore did not respond within the given time frame and the ruling went against them.
The Japan and Singapore units existed alongside Wuxi Suntech as subsidiaries of PSS, which in turn had been a subsidiary of Suntech Power Holdings. The two were then rolled into Wuxi Suntech around the time that Shunfeng began its acquisition of Suntech’s main manufacturing operation based in Wuxi.
The exact nature and timing of the transfers remains in dispute.
“We are pleased to have the judgment in our favour and will take further steps to enforce our rights against Suntech Singapore. It is the first of many steps being taken by the Liquidator to maximise the recovery for the creditors," said John Ayres, the Liquidator of PSS.
"The recovery actions will continue with focus on an investigation of the purported transfer of equity interest of Suntech Power Japan Corporation and Suntech Singapore to Wuxi Suntech Power Co., Ltd. and the purchase of PSS""s equity interest in Wuxi Suntech by Jiangsu Shunfeng Photovoltaic Technology Co., Ltd, a subsidiary of a Hong Kong listed company Shunfeng Photovoltaic International Ltd."
It is not known if the sum involved represents the contested Shunfeng monies alone.
Suntech Power Holdings liquidator in the Cayman Islands is attempting to secure creditors a portion of their investments.