In a last Thursday report, Reuters revealed that the local government of the city of Wuxi, where Suntech Power Holdings is headquartered, is apparently trying to fend off the collapse of China's leading solar panel manufacturer by seeking to bail out the company.

According to the Reuters report, citing an unidentified source aware of the proceedings, one of the proposals being considered by the local government of Wuxi is to allow its investment arm, Wuxi Guolian, to acquire Suntech's Wuxi business via a restructuring, and test a bankruptcy law which came into force in 2007.

Revealing that the Wuxi government is trying to bail out Suntech in one form or the other, the source told Reuters that the local government wants to ensure that the production at Suntech does not stop. The source further added that a collapse of Suntech will "damage: the reputation of the Wuxi government.

The Wuxi government's intentions to keep Suntech afloat are apparently rooted in the fact that the company - which was founded by Chinese scientist Shi Zhengrong in 2001 - provides employment to approximately 10,000 people in Wuxi.

Meanwhile, though a Wuxi government spokesman refrained from confirming whether the local government was working on plans to bail out Suntech, he did say that "if there is any news regarding the restructuring, it will be released through Wuxi Guolian."