China's Shunfeng gets $126m loans

Suntech has not reported a profit since the first quarter of 2011

Inside a Suntech plant

Shunfeng Photovoltaic International – the company in pole position to bid for insolvent Suntech’s main production unit – has secured HK$980m ($126.3m) in loans.

Shunfeng Holdings, a wholly-owned subsidiary, will obtain the funds from HK Bank.

The funds will primarily be used to build PV plants, Shunfeng said in a filing to the Hong Kong stock exchange.  

Shunfeng has “tentatively” emerged as the leading candidate to make a strategic investment in Suntech, a statement by the Wuxi municipal government said this week.

Wuxi Suntech was forced into bankruptcy in March.

Parent group Suntech is struggling to regain stability and restructure financially after defaulting on  $541m worth of bonds and losing its former status as world’s biggest supplier of PV modules.

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