China Exclusive: Solar panel giant declares bankruptcy

WUXI, Jiangsu, March 20 (Xinhua) -- Leading solar panel maker Wuxi Suntech, a major subsidiary of the New York-listed Suntech Power based in the east China city of Wuxi, declared bankruptcy on Wednesday. In accordance with China's Bankruptcy Law, the Wuxi City Intermediate People's Court on Wednesday approved Wuxi Suntech's filing for bankruptcy following a joint application issued by the company's nine creditor banks on Monday. The company made no objection to the ruling. Founded in 2001, Wuxi Suntech supplies more than 95 percent of Suntech Power's products. Wuxi Suntech's total production capacity reached 2.4 gigawatts (GW) last year. As of February, Wuxi Suntech's credit balance of local and foreign currencies among its creditor banks totaled 7.1 billion yuan (1.14 billion U.S. dollars), a senior company manager said. The banks said based on market rules and the law, since the outstanding loans have been overdue and the company did not render a feasible repayment plan, declaring bankruptcy will protect their legal interests and maintain social stability. In order to revive the company, the banks also expect it to seek a third party for strategic reorganization, according to the manager. One of China's largest solar module makers, Wuxi Suntech was founded in 2001 by Shi Zhengrong, a prominent solar power scientist. In 2005, Suntech Power Holdings Co., Ltd., or Suntech Power, was founded and listed in New York. Read the rest at http://news.xinhuanet.com/english/china/2013-03/21/c_132249607.htm