Economic Observer Online
By Wan Xiaoxiao (万晓晓)
Mar 20, 2013
Translated by Zhu Na and Pang Lei
Original article: [Chinese]

Wuxi Suntech, a major subsidiary of the New York-listed solar panel manufacturer Suntech Power Holdings Co., was reportedly ordered by a local court to undergo "bankruptcy reorganization" yesterday.

According to Xinhua News Agency, the Wuxi City Intermediate People's Court yesterday ruled in favor of a petition to reorganize the company that was filed by a group of Chinese banks on Monday.

Suntech Power has made no announcement about whether the court has ordered the restructuring of its main subsidiary in China.

In an official announcement to investors yesterday, Suntech Power said it would not file an objection against the petition and were expecting a decision from the court over coming days.

The troubled Chinese solar manufacturer defaulted on repayment of $541 million in bonds that fell due on Mar 15.

On Tuesday Suntech Power also announced that it had appointed two new directors to the company's board.

The company announced that Weiping Zhou (周卫平), a senior executive from a state-owned investment company controlled by the Wuxi city government, has been appointed to the board of directors and made president of the company. Philip Fan (范仁鹤), a former executive board member of the Hong Kong-listed China Everbright International, was also made an independent board member of the company.

The addition of the two new board members has been interpreted as an indication that the company has now embarked on a fundamental overhaul led by its state-owned investors.

The 21st Century Business Herald, citing a source from inside the PV industry, reported that once the company launches a bankruptcy plan, Wuyi Guolian will try to seek a majority stake in the company by exchanging debt for stocks. It's still unclear whether this will be enough to make Wuyi Guolian the majority shareholder.

Zhou Weiping will be in charge of the company's operation and management, and jointly decide the strategic direction of the company with Suntech's CEO David King (金纬).

Suntech's board now has seven members, including four independent directors.

Zhou was previously chairman of Wuxi Guolian Futures Co. and the former finance department manager of the state-owned Wuxi Guolian Development Group.

Suntech's manufacturing and administrative headquarters are based in the city of Wuxi, which is located in the coastal province of Jiangsu, directly north of Shanghai.

Links and Sources
Suntech - Suntech Power Holdings Co., Ltd. Announces Petition of Insolvency and Restructuring of its Chinese Subsidiary Wuxi Suntech Power Holdings Co., Ltd.
Xinhua News Agency - China Exclusive: Solar panel giant declares bankruptcy