Creditors meeting for Suntech subsidiary

Suntech Power Holdings Co Ltd, the former world-leading solar panel producer, has scheduled a creditors meeting for its Wuxi subsidiary on May 22, the company said.

Wuxi Suntech, the company's Chinese subsidiary, which is in the process of restructuring, continues to operate under a court-appointed administrator, the company said in a statement on Wednesday.

Nine banks, including Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China, had outstanding loans of 7.1 billion yuan ($1.1 billion) to Suntech at the end of February, the Xinhua News Agency said.

Suntech defaulted on $541 million of convertible bonds due in March, and announced bankruptcy of its Wuxi subsidiary. Suntech said it has entered into a forbearance agreement with holders of over 60 percent of the notes under which the signing bondholders agree not to exercise their rights under the notes and related indentures until May 15, 2013.

The cash-strapped company also expects to enter discussions with creditors of its main unit in Europe, which was granted a two-month provisional moratorium from creditor claims on April 9.

Suntech is delaying its full-year financial report, but according to preliminary calculations, the Chinese photovoltaic manufacturer saw 2012 revenue tumbling from $3.14 billion in 2011, to around $1.63 billion.

Earlier reports said US tycoon Warren Buffett and Chinese State-owned enterprise Guolian may enter, as strategic investors, Suntech's restructuring program.