Wuxi Suntech agrees Solarif insurance

Dec 13, 2013 - Chinese photovoltaic (PV) panel maker Wuxi Suntech Co Ltd said Friday it had agreed a solar insurance deal for its products with Solar Insurance & Finance (Solarif).

The company, a unit of troubled Suntech Power Holdings Co Ltd (NYSE:STP), explained that the insurance offer comes to complement existing product and performance warranties. It will be available to all its global customers.

Solarif, which is based in the Netherlands, has carried out a rigorous inspection of Wuxi Suntech's manufacturing plants in China as well as of its production process and materials before signing the deal, said chief strategy officer Rene Moerman.

The past year has been rather turbulent for Suntech. The company failed to make the principal payment on a USD-541-million (EUR 394m) bond in March and since then has been trying to reach a restructuring deal with its creditors. Also in March its principal unit in China, Wuxi Suntech Power Holdings, entered insolvency proceedings and restructuring, while recently Shunfeng Photovoltaic International Ltd (HKG:1165) agreed to buy it. European unit Suntech Power International Ltd (SPI) just secured a six-month extension to an earlier six-month definitive moratorium on creditor claims relation to the over-indebtedness of the unit.

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