Once the world’s largest producer of solar PV cells and modules, Suntech Power Holdings Co. Ltd. (NYSE: STP) announced this morning that a group of eight Chinese banks have filed a petition for insolvency and restructuring at one of the company’s subsidiaries in Wuxi. The subsidiary, Wuxi Suntech, will not file an objection to the petition.

The company said that in the event the Chinese court approves the banks’ petition, Suntech will still be able to meet its committed orders from other facilities in Wuxi, Shanghai, and Luoyang. The company’s CEO said:

While we evaluate restructuring initiatives and strategic alternatives, we are committed to continuing to provide high-quality solar products to our global customer base. 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.

Growth? This guy has been standing out in the sun too long. Suntech is toast. The Wuxi subsidiary is the company’s main operation, and while Suntech may believe it will be able to continue production at its other plants, the company might wish to consider what it will do if and when customers cancel these orders.

Shares have fallen more than 28% this morning to $0.41 and are on their way to zero. It is just a matter of time.

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