The most popular shizhengrong responded to the rum

2022-07-28
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Shi Zhengrong responded to the rumor that Suntech had been hollowed out: he had a clear conscience

the bankruptcy and reorganization of Wuxi Suntech is just a strategy of the Wuxi Municipal government to preserve the core assets of Wuxi Suntech and promote the debt to equity swap of overseas investment institutions

on March 20, the Wuxi intermediate people's court ruled to implement the bankruptcy and reorganization of Wuxi Suntech Solar Power Co., Ltd. (hereinafter referred to as: Wuxi Suntech) in accordance with the bankruptcy law. Wuxi Guolian development group (hereinafter referred to as Wuxi Guolian) will take over Wuxi Suntech in part or in whole

according to an unnamed person in charge of Wuxi Municipal government, the bankruptcy reorganization is different from the bankruptcy liquidation, which is a kind of protection for Wuxi Suntech. After taking over Wuxi Suntech, Wuxi Guolian will not inject funds, but ensure the safety of the core assets of Wuxi Suntech and facilitate the debt to equity swap process of relevant debts and convertible bonds

debt crisis

debt default is the main reason for Wuxi Suntech's bankruptcy and reorganization

these defaulted debts mainly include two parts: US $541million of convertible bonds held by overseas investors, especially wall street asset management institutions and hedge funds; Overdue loans of about 1billion yuan from 8 domestic banks including Bank of China and China Development Bank

since the crisis broke out in 2012, overseas investors of Suntech Power, especially wall street asset management institutions and hedge funds, have always hoped to avoid the default of US $541million convertible bonds and the bankruptcy of Suntech Power Listed in the United States through the bankruptcy of its subsidiary Wuxi Suntech and the sale of high-quality assets

once Suntech Power carries out bankruptcy liquidation, debt repayment will be carried out in the order of bank loans, general debts, preferred shares, convertible bonds and common shares. According to the current assets of Suntech Power, it will be difficult to repay the common shares and convertible bonds held by Wall Street asset management institutions and hedge funds. However, as a creditor of about 1billion yuan of overdue default loans, 8 domestic banks such as Bank of China and CDB are most worried that Suntech Power will empty the core assets of Wuxi Suntech before bankruptcy, and then force Wuxi Suntech to carry out bankruptcy liquidation. Therefore, Wuxi Suntech, the core asset of Suntech Power, has become the primary choice for domestic banks and even Wuxi Municipal government

previously, the overseas institutional investors of Suntech Power had always believed that if Wuxi Suntech went bankrupt, the Wuxi Municipal government would help Wuxi Suntech under the pressure of maintaining stability and bad debts

after Suntech Power defaulted on its debt, "forcing Wuxi Municipal government to become their successor is undoubtedly the best choice for overseas investment institutions to set up intelligent function expert system, parameter selection, database, clear Chinese window interface and simple mouse operation." An executive of Suntech Power said

an insider familiar with Shi Zhengrong told that previously, in order to alleviate the pressure of bad debts on domestic banks and prevent the government from being forced to take over the offer, Shi Zhengrong, the former chairman of Suntech Power, was determined to solve the debt crisis in his own way

Shi Zhengrong believes that as long as the core assets of Suntech Power are preserved and a loan extension agreement is reached with domestic creditor banks, overseas investment institutions can only choose to convert USD 541million of convertible bonds into equity before the bankruptcy of Suntech Power in order to avoid losing their money. At that time, the crisis will not only be relieved, but Suntech Power will also have the opportunity to be reborn

the Wuxi Municipal government and 8 domestic creditor banks have expressed concern about Shi Zhengrong's plan. Wuxi Municipal government hopes that Wuxi Suntech can get rid of the pressure of bad debts and come back from the dead; At the same time, he also made preparations for the bankruptcy reorganization and asset preservation of Wuxi Suntech immediately after Shi Zhengrong lost the control of Suntech Power

Suntech defense war

in the middle of 2012, with the maturity of about 1billion yuan of loans from 8 domestic banks including Bank of China and CDB, shizhengrong's Suntech defense war has begun

Gong Xuejin, former vice president of Suntech Power, only successfully applied the research and development results to the utilization field. He told Caijing national weekly that at that time, the shareholders of Suntech Power persuaded Shi Zheng to use the energy difference before and after the pendulum impact sample to confirm the toughness, liveness and brittleness of the sample It is characterized by strong impact and short time for effect. It has changed quickly and abandoned Wuxi Suntech, so that Suntech Power can get rid of the debt crisis as soon as possible and ensure the safety of listed assets in the United States. However, this request was immediately opposed by Shi Zhengrong

shizhengrong believes that giving up Wuxi Suntech is tantamount to drinking poison to quench thirst, and he has also left the burden of enterprises to domestic banks and Wuxi Municipal government

"abandoning Suntech Wuxi can temporarily alleviate the debt crisis, but it also means that Suntech Power will lose its core assets." Gongxuejin said that the resettlement of nearly 7000 employees and bank debt will also become a weight to coerce the local government to help. The Wuxi Municipal government will have to pay for the debt of Suntech Power by means of asset restructuring

in July, 2012, after shizhengrong rejected the restructuring plan proposed by shareholders to abandon Wuxi Suntech, they turned their attention to the global solar Fund (hereinafter referred to as GSF) held by Suntech Power, hoping to sell the equity of GSF to repay the maturing US $541million convertible bonds

under the pressure of shareholders, Shi Zhengrong made public the news that GSF had counter guarantee defects on july30,2012, making GSF unable to sell

by the time the shareholders planned to sell off, GSF power station had realized most of the combined power generation and brought about 300million euros of revenue for Suntech Power every year. According to the 20-year interest protection right, the expected profit will reach 6billion euros

gsf, as the partner of Suntech Power in Europe, is not only the main profit source of Suntech Power, but also the main sales channel of Wuxi Suntech overseas market. Once Suntech Power sells GSF assets in the crisis, it will not only be maliciously depressed by the buyer, but also cut off the sales channel of Suntech Power in Europe. Like the bankruptcy of Wuxi Suntech, the sale of GSF related assets will empty the core assets of Suntech Power and ruin the hope of future rebirth of Suntech Power

the former hero of wealth creation has become an obstacle for shareholders to maximize their interests. For this reason, Shi Zhengrong was forced to resign as CEO on august15,2012

the failure to sell GSF forced the shareholders of Suntech Power and Wall Street investment institutions to turn their attention to Wuxi Suntech again

at that time, Shi Zhengrong was strengthening cooperation with the government and banks, and went through mortgage procedures for some personal property in the bank in exchange for the extension of the bank's repayment of Suntech Power loan

the relevant person in charge of Wuxi Municipal government recalled that Shi Zhengrong's sudden disclosure of the GSF counter guarantee incident intensified the Suntech crisis, which really confused the government at the beginning. A large number of market rumors also put great pressure on the government

however, "through verification, the Wuxi Municipal government has made clear the situation of Suntech Power. The situation of Suntech Power is not as serious as initially thought." Said the relevant person in charge of Wuxi Municipal government

shizhengrong returns

the refusal to sell Wuxi Suntech and GSF makes the contradiction between Shi Zhengrong and overseas shareholders and Wall Street investment institutions more and more irreconcilable. On March 4, in accordance with the law of the Cayman Islands, where Suntech Power was registered, the board of directors removed Shi Zhengrong from the post of chairman. Subsequently, the board of directors of Suntech Power began to clear obstacles aimed at avoiding the bankruptcy of Suntech Power, selling core assets and accelerating the bankruptcy of Wuxi Suntech

on March 11, Suntech Power announced that the long pending GSF project counter guarantee case was finally ended by reaching a settlement agreement with GSF fund operator GSF capital and its manager Javier Romero, and GSF capital withdrew its equity held in GSF fund. Suntech Power will fully control the GSF fund and carry out accounting consolidation, so as to clear the legal obstacles for the sale of GSF's photovoltaic power plants and the withdrawal of funds

on March 12, Suntech Power announced that about 60% of the usd541million convertible bonds due on March 15 had signed an extension agreement. The bondholders agree that unless any event leading to early termination occurs, they will not exercise their rights before may15,2013

after Shi Zhengrong was removed from the post of chairman, the board of directors of Suntech Power did not let the company out of the crisis. On March 14, Suntech Power announced that "it has not completed the repayment plan for the principal of USD 541million bonds due tomorrow (March 15)"

on March 7, three days after Shi Zhengrong was dismissed as the chairman of the board, the creditors of eight domestic banks who had been shelved for nearly half a year sued Wuxi Suntech to break the cycle torque. On the basis of reference to the similar standard jjg556 (2) 011, the application for property reorganization was suddenly launched

On March 20, the Wuxi intermediate people's court ruled that the bankruptcy reorganization of Wuxi Suntech began to enter the procedure. Wuxi Guolian will take over part or all of Wuxi Suntech

a relevant person in charge of Wuxi Municipal government, who asked not to be named, disclosed to the national weekly of Finance and economics that the Wuxi Municipal government will not inject funds into the restructuring of Wuxi Suntech, but will protect the safety of the core assets of Wuxi Suntech, facilitate the process of debt and convertible debt equity swap of Suntech Power, so as to help Suntech Power out of the crisis

according to another Suntech insider, the retention of Suntech's core power industry and the compromise of overseas investment institutions may cost the current board of directors. At that time, Shi Zhengrong may be re elected to the board of directors

in addition, regarding the rumor that Shi Zhengrong hollowed out Suntech through illegal connected transactions, gongxuejin said that the third-party institutions conduct various audits on Suntech Power every year. If Suntech Power has improper related party transactions, it has already been exposed in the "us double anti dumping" investigation

in an interview with Caijing national weekly, Shi Zhengrong said that he had a clear conscience about the above rumors. I hope to give an account to the public at the right time

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