3/11/2013 - Business
Bank of China sues Suntech over loan dispute
State-owned Bank of China is suing Chinese solar company Suntech Power Holdings Co. Ltd. over a loan contract dispute, reports Bloomberg, citing Chinese newspaper 21st Century Business Herald. A hearing on the case will be held later this month. The article reports that a board of seven Chinese lenders led by Bank of China was formed late last year to work with Suntech on its plan to extend the maturity of its credit facilities and reduce total debt and related interest expenses. Suntech has a $541 million convertible bond due on March 15. The board agreed to extend loans to Suntech only if its founder and former CEO Zhengrong Shi got rid of his stake in Suntech or left the company. Last week, Suntech’s board ousted Shi as chairman of the board, a move that Shi has vehemently vowed to fight. Suntech told Bloomberg that it was aware of the Bank of China litigation and was working to resolve it amicably.
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