PEKING (dpa-AFX) - Suntech Power Holdings Co., Ltd. (STP), a producer of solar products, Friday said it has reached an accord with holders of a majority of the 3 percent Convertible Senior Notes for a new forbearance agreement, which sets forth the next steps in the debt restructuring process. The new forbearance agreement provides further time to implement the restructuring and will expire on August 30.
The new agreement contemplates an equitization of all major debt claims held by the bondholders. Additionally, the bondholders will nominate two additional members to the company's Board of Directors who will assist in the company's ongoing restructuring efforts.
The bondholders and the company will work toward a framework agreement in the following weeks regarding the specific terms of a debt restructuring and equitization. The two will also work together to identify strategic and financial investors to bring in new capital to the company.
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