Troubled Chinese solar panel maker Suntech announces possible $150 million cash infusion

BEIJING, China – China’s troubled solar panel maker Suntech Power Holdings Ltd. says it is in line to receive a $150 million investment from a company controlled by its hometown government following a debt default.

Suntech said it has received an investment letter of intent from Wuxi Guolian Development (Group) Co.

Suntech’s CEO said in a statement it is not a firm commitment but “an important step in restructuring of the company.”

Suntech, based in the eastern city of Wuxi, and other solar panel manufacturers have been battered by price-cutting wars triggered by a glut of production capacity in the global industry.

Suntech’s main Chinese subsidiary, Wuxi Suntech Power Co., was forced into Chinese bankruptcy court in March after missing a $541 million payment to bondholders.