China-based Shunfeng Photovoltaic International Ltd said the liquidators of Suntech Power Holdings Co have not approved its plan to buy Wuxi Suntech. A filing in the Hong Kong Stock Exchange revealed that provisional liquidators appointed by a court in Cayman Islands last November 7 told Shunfeng that Suntech did not have the authority to sell the said unit. The liquidators also said that they had not given the signal to transfer or dispose the unit.

Wuxi Suntech, the main unit of Suntech, went into bankruptcy after it defaulted on a bond payment last March. In November 1, Shunfeng agreed to purchase Wuxi Suntech in a deal worth CNY 3 billion or USD 492 million.  Suntech was the largest solar panel manufacturer worldwide two years ago.

The filing also revealed that the transfers happened while Suntech's main unit was controlled by an administrator. According to a Bloomberg report, any objections posed by the liquidators about the transfer should be directed to the administrator or the Wuxi Intermediate People's Court. Under the laws on Chinese bankruptcy, the court is supervising the unit's bankruptcy proceedings.

The liquidators of Suntech will also be investigating the disposal of Suntech Power Investment Pte and Suntech Power Japan Corp to Wuxi Suntech. The filing revealed that the transactions may be void under the law of the British Virgin Islands. Changzhou, China-based Shunfeng intends to meet with its lawyers as well as the administrator of Wuxi Suntech to talk about the matter.

On November 7, Suntech informed a court in Manhattan that an involuntary bankruptcy petition against the firm filed in the US could spoil efforts to restructure the company. Meanwhile, Shunfeng said on November 12, that the equity-interest stakeholders as well as creditors of Wuxi Suntech had already given their stamp of approval for the sale of the unit.