Suntech Power Holdings' European subsidiary, Suntech Power International has gone to a court in its locality in Switzerland to stop bankruptcy proceedings.
The subsidiary has been granted a provisional moratorium for two months on creditor claims for payment by the court in Schaffhausen, Switzerland.
“The goal of the provisional moratorium is to allow time to restructure debt, primarily inter-company debt. During this process, we are committed to continuing to deliver high-quality solar products to our customers in Europe,” said David King, Suntech's CEO.
Suntech's Chinese Wuxi subsidiary recently entered bankrputcy proceedings after Suntech defaulted on repayment of a US$541 million bond.
In a separate statement, Suntech Power International said that the Schaffhausen court has appointed Holenstein Law to initiated to the possibility of restructuring Suntech’s European operations.