Suntech, which is one of the world's largest solar panel manufacturers, was forced into bankruptcy court last Wednesday, and is the latest to fall thanks to the global solar industry slump.
Suntech Power Holdings stated eight Chinese banks asked a court to declare insolvency after the company failed to make a $541 million payment to bondholders. The company has stated it would not oppose the petition.
The development has been a dramatic one of reversal for the company that was leading in China under the vastly-expanding renewable energy industry. Founder Shi Zhengrong has been forced to watch a majority of his multi-billion dollar investment evaporate.
"While we evaluate restructuring initiatives and strategic alternatives, we are committed to continuing to provide high-quality solar products to our global customer base," Suntech CEO David King said. "During this period, we will continue to work closely with all of our stakeholders and take the necessary steps to put Suntech back on track for growth."
The renewable, and particularly the solar-power industry has taken on huge losses in the past half-decade thanks to a world-wide economic slowdown that seems to affect all corners of the globe. Suntech is only the latest, as Germany's Q-Cells filed for bankruptcy last April.
Suntech, which is headquartered in the east city of Wuxi, has been negatively affected by the revelation that its business partner faked $680 million in collateral for its loan that Suntech had previously guaranteed.
Monday saw the company looking to find renewed financing and negotiating with creditors to find a restructuring deal regarding its debt.
