Suntech Power Holdings Co. has agreed to sell its core assets in China for 3 billion yuan (US$492 million) to a smaller rival after defaulting on billions of dollars in debt, the Wall Street Journal reported Sunday. Shunfeng Photovoltaic International Ltd. said it won a bid to acquire Suntech’s main Chinese unit, Wuxi Suntech Power Co., once the world’s largest solar panel supplier. Wuxi Suntech owns intellectual property, more than two gigawatts of solar panel manufacturing capacity and a research and development operation, people familiar with the company were quoted as saying. Suntech, which has struggled amid a global overcapacity of solar panels and falling prices, defaulted on US$541 million in United States convertible bonds in March. That triggered defaults on its Chinese debt and put Wuxi Suntech into bankruptcy proceedings in China. Including the bonds, Suntech holds more than US$2.3 billion in mostly Chinese debt, the report said.
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