Suntech Power Regains NYSE Listing Qualification

Yesterday (August 13th), the latest news from the reporter showed that due to Suntech's average price of 30 consecutive trading days higher than 1 US dollar, it regained its listing qualification.

According to public reports, on the evening of April 9, Suntech Power International stated that it received warnings of delisting from the New York Stock Exchange. This is the second time the company has received a delisting warning in more than six months. According to report, on March 13th, under the influence of 570 million U.S. dollars convertible bonds that could not be repaid due to the expiration of the bankruptcy news, Suntech’s share price fell below 1 U.S. dollar and became a “junk share”, followed by the rating agency Suntech Power. The stock rating is set to sell.

The Suntech Power Announcement shows that the company received notification from the New York Stock Exchange that the average closing price of the company’s American Depositary Receipts (ADS) was less than US$1 for 30 consecutive trading days ending on April 4, 2013. NYSE's provisions for continued listing standards. According to the NYSE regulations, if Suntech Power receives a notice for more than US$1 in the last trading day of any month within 6 months after receiving the notification, it will be within this period or until the last day of the period. The average closing price for any 30 consecutive trading days is higher than US$1, and the company will re-qualify for listing.

Suntech Power also stated that the company has notified New York Stock Exchange that it intends to make up for the deficiencies within the stipulated time and that the company’s ADR will continue to be listed on the NYSE. The NYSE's notice will not affect the normal operation of the company.

According to the latest information, Suntech Power announced on August 12 that Suntech has reconfirmed the listing requirements of the NYSE's minimum stock price. The reason is that on August 2nd, the NYSE informed Suntech that it had calculated the average stock price of the company for 30 consecutive trading days as of July 31, 2013 and concluded that Suntech’s stock price was higher than that of Suntech. The NYSE sets the average stock price for the first 30 consecutive trading days to the lowest standard of US$1, and at the same time, the stock price on the last calendar month of the trading period is higher than US$1.

Although the stock price was higher than US$1 for 30 consecutive trading days, it met the requirements for re-listing. However, in the view of the industry, Suntech’s share price rise was caused by the overall recovery of the photovoltaic industry.

“If the company does not solve the current debt problem as soon as possible, then the stock price will undoubtedly return below 1 US dollar, and then it will receive a delisting warning from the NYSE. In addition, it has experienced three delays of 541 million US dollars. If the convertible bonds are not repaid by the time they are due, if the creditors jointly appeal to the U.S. court, Suntech Power will face mandatory bankruptcy and face the risk of delisting.” Zhao Yuwen, a researcher in the photovoltaic industry, told reporters.