Wuxi Suntech’s creditors lay debt claims of $2.5bn

Wuxi Suntech, a subsidiary of Chinese solar panel manufacturer Suntech Power, is facing a total $2.5m debt arrogates from 500 local creditors who laid claims with administrators of the company.

Administrators are, however, yet to review and register most of the debt claims of the lenders that also includes banks and the company’s suppliers.

The claims were laid at the beginning of the restructuring process, which commenced after Wuxi court appointed administrators to review the business.

In March 2013, Wuxi Suntech filed for bankruptcy protection after its parent Suntech Power defaulted on a $541m convertible bond.

Reuters quoted the administrator spokesperson Yang Erguan saying that its debt claims of nearly $532.9m have been confirmed, while the debt registration and verification of the remaining claims are scheduled to conclude by the end of June 2013.

"We will complete the drafting of the restructuring plan and choose a strategic investor as soon as possible," added Erguan.
Earlier in May 2013, Suntech claimed that it has struck an agreement with its overseas investors to extend the bond liabilities.

Meanwhile, the court has briefed the creditors of the company upon debt restructuring, while debt administrator assured them of safeguarding their interest.

Suntech previously released a statement saying that the restructuring process is aimed at protecting debt obligations, besides advancing production and operations of the company.

Wuxi Suntech witnessed marginal progress in its business in the wake of debt administrator’s efforts to recover accounts receivable and offload inventories, the statement said.

The financial crisis of Suntech is said to be due to faltering solar energy industry that is flooded with solar panels resulting into slump in prices.