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China court declares Suntech bankrupt

Leading Chinese solar developer files for bankruptcy as company announces restructuring of subsidiary Wuxi Suntech

Falling star: Suntech has filed for bankruptcy

Chinese firm Suntech, one of the world's biggest solar panel manufacturers, has been declared bankrupt. The news comes after the company announced last week it will close its US solar panel plant in April this year.

Reports have said that a court in Wuxi, Suntech’s company base, had ruled that the firm undergo "bankruptcy reorganisation". Suntech, has since announced that the court in Jiangsu Province has formally accepted the petition for the insolvency and restructuring of its Chinese subsidiary Wuxi Suntech.

The Court has appointed an administration committee, consisting of local government representatives and accounting and legal professionals, to administer the restructuring of the company.

Suntech said 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 continuing production and operations.”

Wuxi Suntech is the company's principal operating subsidiary in China engaged in the manufacture of photovoltaic cells and PV modules. Wuxi Suntech will continue operations through the restructuring period. Suntech and the administration committee are committed to maintaining all of Suntech's product warranty obligations.

Suntech said that no other parts of its company have been affected by the court’s decision.

“Suntech has not commenced insolvency proceedings, nor have any of the company's other principal operating subsidiaries. The company is not aware of any similar proceedings regarding any of its other entities,” the company said.