Cash-strapped Chinese solar panel maker Suntech Power Holdings Co Ltd is seeking to sell some assets and bring in a strategic investor to repay debt and revitalise the company, a person with direct knowledge of the matter told Reuters on Wednesday.
“It is looking for buyers for some of its projects and downstream assets,” said the source, who asked not to be identified as he was not authorised to speak to the media. “It is also seeking to bring in a strategic investor to take a stake in the company.”
“Suntech is in dire need of cash,” the source added.
He gave no details on how any stake sale would be structured or how it would affect existing shareholders.
A spokesman for Suntech Power, whose shares are traded on the New York stock exchange, declined to comment.
In what analysts said was one of China’s biggest corporate failures in recent history and could also be the first big test of China’s bankruptcy law since it was introduced in 2007, Suntech Power - China’s largest solar panel maker - said last month its biggest subsidiary Wuxi Suntech was bankrupt but would undergo government-led restructuring.
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