Suntech appoints new Chairperson but incumbent refuses to budge
Internal struggles threaten to be last stand for beleaguered PV manufacturer
Suntech's board of directors have released a press release claiming they have appointed Susan Wang as the new Chairwoman of Suntech holdings. This was quickly followed by a flurry of press announcements from incumbent Chairman and founder Dr. Shi Zhengrong stating that he was not stepping down and accusing the Board of acting illegally and having no plan in dealing with the upcoming $541 million convertible bond hanging iver the company.
Wang has been a director of Suntech since April, 2009, Ms. Wang was supposed to replace Shi, who they expected to remain a director of Suntech. The board offered thanks Dr. Shi for his contributions as chairman.
"I'm pleased to have been elected chairwoman of Suntech's Board of Directors," said Ms. Susan Wang. "Suntech's board and management team are focused on resolving critical capital structure initiatives and charting Suntech's path forward as a leading supplier of solar products."
Shi however claimed in a number of interviews that the board has not followed procedures and he was kept out of key board meeting that led to the decision. Shi stated he was shocked at the announcement and retained good terms with all parties and did not see the move as a directive from the Chinese government despite reports coming out of Chinese media that his removal was an expectation from Beijing.
The company is still trying to recover from the bond scandal that arose last year after it was revealed that they had invested in German bonds that did not actually exist. Shi claims the Board have no viable plan and the affected parties still wish to communicate with him.
Suntech had hired UBS AG in an attempt to develop a solution to the bond scandal and hopefully renegotiate the debt in the face of falling solar prices.
Ms. Wang formerly served as the Executive Vice President of Corporate Development and Chief Financial Officer for Solectron Corporation, a worldwide provider of electronics manufacturing services, where she worked from 1984 until 2002 and during which she helped to guide Solectron's revenue growth from $40 million in 1984 to over $14 billion in 2002. Prior to Solectron, Ms. Wang held financial and managerial positions with Xerox Corporation and Westvaco Corporation.
The situation creates more uncertainty for the company and the outcome will be closely watched by all parties.
