Chinese solar energy company Suntech Power Holdings Co. Ltd. (STP) said Thursday that a court in China has formally accepted its main operating subsidiary Wuxi Suntech Power Co. Ltd.'s petition for insolvency and restructuring.
The Wuxi Municipal Intermediate People's Court in Jiangsu Province, China has formally accepted Wuxi Suntech's petition for insolvency and restructuring. On Wednesday, Suntech said that a group of eight Chinese banks filed a court petition for insolvency and restructuring of Wuxi Suntech.
Wuxi Suntech is engaged in the manufacture of photovoltaic or PV cells and modules in China. The company's profit has taken a hit owing to lower prices, oversupply, as well as anti-dumping charges imposed on China by the U.S.
Suntech recently defaulted on the payment of a $541 million dollar-denominated bond. The default led to cross-defaults for Suntech's other outstanding debt.
Suntech said that Wuxi Court has appointed an administration committee, consisting of local government representatives as well as accounting and legal professionals, to administer the restructuring of Wuxi Suntech.
The company noted that the insolvency and restructuring procedure is designed to facilitate an orderly process for both Wuxi Suntech and its creditors. The primary goal is to restructure Wuxi Suntech's debt obligations, while enabling to continue production and operations, Suntech said.
Wuxi Suntech will continue operations through the restructuring period. In addition, the company has additional wholly-owned or partially-owned subsidiaries with cell and module production facilities that continue to produce solar products to meet customer orders.
Suntech said that the company and the administration committee are committed to maintaining all of Suntech's product warranty obligations.
Wuxi Suntech's ultimate parent company Suntech Power Holdings Co. Ltd. as well as other principal operating subsidiaries have not commenced insolvency proceedings. Suntech Power said it is not aware of any similar proceedings regarding any of its other entities.
In Thursday's regular session, STPI is trading at $0.35, down $0.23 or 40.07 percent on a volume of 521,338 shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.