Chinese Solar Panel Company Defaults on Debts

Unable to make payment on $541 million in bonds

Chinese solar panel giant Suntech Power announced Monday that it was in default on its debt after failing to make a payment on $541 million worth of bonds.

One of the world's top two solar cell and panel producers, targeted last year by US trade sanctions, Suntech said it had already entered an agreement with 60 percent of the bond holders to hold off legal claims while a debt restructuring can be negotiated.

The non-payment on the bonds triggered cross-default clauses with other lenders, putting Suntech in default on debt to the International Finance Corp. and Chinese domestic lenders.