CP from Credit Bubble Stocks had a good comment on this issue. It looks like the 40% who didn't agree can still do whatever they want:
"This is from the Suntech indenture:
'Subject to certain exceptions, the holders of a majority in aggregate principal amount of the outstanding notes may waive our compliance with any provision of the indenture or notes. However, without the consent of the holders of each outstanding note affected, no amendment, supplement or waiver may: change the stated maturity of the principal of, or the payment date of any installment of interest or additional interest on, any note;'"
Thanks. If I read that correctly, that pretty much means any bond holder can cause a default event if Suntech doesn't pay by March 15. And it would be interesting to see on the 6K filings about the terms of the extension to May 15 for those who agree. What is the incentives for holders to extend for even a few months? as oppose to those who refused. Then again, the way the docs were written, the bond holders really have very little room to negotiate. The convertible option feature of the security meant bond holders was suppose to be compensated for the risks of not having collateral on bonds and now it is making a big mess for the holders.