"Suntech's local creditors claim $2.5 billion as restructuring starts" ($STP)
Results from the Wuxi Suntech insolvency case meeting that happened in China overnight:
"Local creditors of Wuxi Suntech, the bankrupt unit of Chinese solar panel maker Suntech Power Holdings Co Ltd, on Wednesday claimed the subsidiary owed them a combined $2.5 billion, at the start of a debt restructuring process expected to last months."So, in addition to the Chinese bank loans there appears to be a huge amount of trade claims against the Chinese manufacturing subsidiary as well.
All of the subsidiary debt is "structurally senior" to the holding company obligations, meaning that for holding company creditors or shareholders to receive anything, the subsidiary creditors would first have to be made whole. (Otherwise, the subsidiary could never dividend anything up to the holding company.)
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