Wuxi Suntech owes US$2.5 billion to local creditors23. May 2013 | Global PV markets, Markets & Trends, Investor news | By: Vera von Kreutzbruck
Chinese photovoltaic manufacturer Wuxi Suntech Power Holdings Co., a Suntech Power subsidiary, owes a domestic debt of $2.5 billion to local creditors, according to media reports.
More than 500 local creditors, including banks and suppliers, claimed on Wednesday in the first court meeting that bankrupt Wuxi Suntech owed them $2.5 billion, reports Reuters. The claims will be reviewed and verified by the appointed debt administrator, the news agency says.
On Wednesday, the first court meeting with Wuxi Suntech’s creditors and the debt administrator was held in the Chinese city of Wuxi to inform them about the status of the debt restructuring process.
"We will complete the drafting of the restructuring plan and choose a strategic investor as soon as possible," a spokesperson for the debt administrator said in a statement after the court meeting.
Until now $538 million of domestic debt have been claimed by 300 creditors, added Reuters. The debt registration process is expected to be completed by the end of June.
On March 18, the Chinese photovoltaic cell and module manufacturer filed for insolvency on March 18. A local court appointed an administration committee made up of local government representatives and accounting and legal professionals to manage the debt restructuring process, which is expected to last months.
Parent company Suntech Power Holdings Co Ltd. had defaulted on $541 million worth of 3% convertible bonds less than one week earlier.
Last week foreign creditors agreed with Suntech Power to "further defer bond obligations," as they vigilantly observe the domestic debt restructuring, according to Reuters.
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