Chinese solar panel maker Suntech Power Holdings’ (STP.NYSE, S9H.FRA) main subsidiary has gone bankrupt after Chinese banks petitioned a court to declare the company insolvent on Monday, The New York Times reported. Wuxi Suntech informed the court Wednesday it would not protest being labeled insolvent, although parent Suntech Power will not declare bankruptcy. A local government-owned conglomerate is expected to take over Wuxi Suntech, which employs roughly 10,000 people in the city of Wuxi in Jiangsu province. That the company is allowing its Chinese subsidiary, which holds most of Suntech Power’s assets, to go bankrupt while allowing the US-listed parent to survive has sparked worries that Chinese creditors may unfairly take precedence over foreign lenders.
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