Suntech Power Holdings Co. Ltd. says the Wuxi Municipal Intermediate People's Court in Jiangsu Province, China, has formally accepted the petition for the insolvency and restructuring of the company's Chinese subsidiary Wuxi Suntech Power Co. Ltd.
Wuxi Suntech is the company's principal operating subsidiary in China engaged in cell and module manufacturing. Initial insolvency petitions were filed earlier this week.
The court has now appointed an administration committee, consisting of local government representatives and accounting and legal professionals, to administer the restructuring of Wuxi Suntech. The primary goal is to restructure Wuxi Suntech's debt obligations while continuing production and operations.
Suntech reiterates that neither the parent company nor any subsidiaries other than Wuxi Suntech have commenced any insolvency proceedings.