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Zhong Lun Represented HSC in Wuxi Suntech’s Bankruptcy Reorganization Procedure
Zhong Lun Represented HSC in Wuxi Suntech’s Bankruptcy Reorganization Procedure
On November 15, 2013, Jiangsu Wuxi Intermediate People’s Court approved the draft bankruptcy reorganization plan of Wuxi Suntech Power Co., Ltd. (“Wuxi Suntech"), which has been attracting wide public attention. Zhong Lun Law Firm represented Hemlock Semiconductor Pte. Ltd. (“HSC"), a Dow Corning subsidiary, in Wuxi Suntech’s bankruptcy reorganization procedure.
HSC was Wuxi Suntech’s long-term supplier for polycrystalline silicon. Based on the Long-term Supply Agreement, HSC had become one of Wuxi Suntech’s largest unsecured creditors and filed the creditor claim in the amount exceeding USD 900 million. This case involves the issue of how investors seek sufficient judicial protection in the bankruptcy procedure from a PRC court and some other cutting-edge issues of bankruptcy law, e.g. “how to use the arbitration clause to avoid bankruptcy court’s exclusive jurisdiction", “when the reorganization procedure ends, as of court’s order or as of full implementation of the reorganization plan", “the validity and enforceability of the take-or-pay clause in a long-term supply agreement". These issues will provide some valuable reference to the judicial practice and even the revision of the bankruptcy law.
Dispute resolution team partner Decai Zhang was the leading lawyer for this case. Also worked on this case were Bing Wang, a non-equity partner, and Li Zhang and Jie Zhou, both associates of Zhong Lun. This is another influential case which Zhong Lun has handled since its representation of Honeywell in the East Star Airlines bankruptcy case.
HSC is a world-known ultra-high-purity polycrystalline silicon supplier. And Wuxi Suntech used to be the largest solar photovoltaic products manufacturer in China.
