As expected, the insolvency and restructuring petition filed against Chinese photovoltaic cell and module manufacturer Wuxi Suntech on Monday has been accepted by the local court.
An administration committee has been appointed to manage the restructuring process. It includes local government representatives, and accounting and legal professionals. The main goal, said Suntech in a statement released today, is to restructure Suntech Wuxis debt, whilst continuing production.
Speaking to pv magazine this week at the PV Project Implementation Conference China, organized by Solarpraxis AG and SEMI, Alex Zhu, Senior Director, Global Product Management, at Suntech, candidly described bankruptcy as "a good thing" for Suntech.
He said bankruptcy would provide the needed restructuring for the manufacturer to emerge as a leaner more competitive player in the industry. It is widely believed the Wuxi Government will step in to save Suntech.
Neither parent company, Suntech Power Holdings Co., Ltd nor its other principal operating subsidiaries are said to have filed for insolvency.