Suntech Power Holdings has revealed that a group of eight Chinese banks have filed a petition for insolvency and restructuring of the company’s main manufacturing subsidiary, Wuxi Suntech.
The struggling company said that it would not file an objection against the petition, kick-starting insolvency and restructuring proceedings as the company had over US$2.0 billion in debts.
Wuxi Suntech is expected to apply to the court to continue operations under the supervision of the administrators, according to Suntech Power Holdings.
"While we evaluate restructuring initiatives and strategic alternatives, we are committed to continuing to provide high-quality solar products to our global customer base," said David King, Suntech's CEO. "During this period, we will continue to work closely with all of our stakeholders and take the necessary steps to put Suntech back on track for growth."
Suntech noted that it owned or partially owned other subsidiaries in the regions of Wuxi, Shanghai and Luoyang that have not been forced into bankruptcy at this time. This was said to allow the company to continue production of solar cells and modules to meet customer orders.
The company also said that it would work with any court-appointed administrators to protect its product warranty obligations.
Suntech expects the Wuxi Municipal Intermediate People's Court in Jiangsu Province to decide whether or not to accept the insolvency petition by the banks in the next few days.