Suntech America committee objects to extension of exclusive periods

By Mark Reccek

Bethlehem, Pa., Oct. 19 – Suntech America, Inc.’s official committee of unsecured creditors objected to the company’s request to extend its exclusive Chapter 11 plan filing and vote solicitation periods, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company is seeking to extend its exclusive filing period through Jan. 7 from Sept. 9 and the solicitation period through March 9 from Nov. 10.

The committee argues the company has not shown that proper cause exists to extend the exclusive periods.

In addition, the committee said the company has made little progress in prosecuting the Chapter 11 cases.

“The debtors have retained exclusivity for nearly 10 months,” the filing said. “Although the parties were able to reach an agreement in principle on the key terms of a consensual plan process months ago, since then the debtors have been unable to advance or otherwise lay the groundwork to implement such terms.”

According to a previous motion, Suntech said it needs to focus on the remaining items that are important to its emergence from Chapter 11, including the resolution of significant and complex claims, “without the distraction, disruption and expense of competing Chapter 11 plans.”

“Maintaining the exclusive right to file and solicit votes on a Chapter 11 plan is critical to the debtors’ ability to finalize and file a Chapter 11 plan and emerge from Chapter 11 as efficiently and expeditiously as possible,” the motion said.

A hearing is scheduled for Oct. 30.

Suntech America is a San Francisco-based producer of solar panels that filed for bankruptcy on Jan. 12, 2015. The Chapter 11 case number is 15-10054.

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