Suntech Is Pushed Into Chinese Bankruptcy Court

Solar-panel maker Suntech Power Holdings Co. STP -8.58% has been forced into Chinese bankruptcy proceedings, sparking questions about how U.S. investors will fare in the decline of one of China's most prominent companies. Given Suntech's status as a major employer and a key player in an emerging industry—it once was the world's largest supplier of solar panels—Chinese authorities might be reluctant to let the company fold. But if Suntech is liquidated, its Chinese creditors, who are owed more than $2 billion, likely would gain access to the company's assets before foreign bondholders would. U.S. creditors were gearing up for a fight Wednesday. Suntech defaulted on a $541 million U.S. bond payment on Friday. "If they take all the assets and give nothing to the U.S. investors, on the next deal, that's going to be remembered," said James Millar. The Wilmer Cutler Pickering Hale and Dorr LLP partner represents four bondholders that had threatened to sue the company in the U.S. to collect on their investment after Suntech defaulted on the bond payment. Rest the rest at http://online.wsj.com/article/SB10001424127887324557804578372082733827860.html