Chinese solar panel producer Suntech Power Holdings has failed to make a bond payment of $541m and declared default amidst faltering financial performance.

Although, the company has secured agreements with holders of 60% of the bonds to postpone the payment, the bonds’ trustee declared the default nevertheless.

Suntech CEO David King stated that the company is discussing strategic alternatives with the lenders and investors.

"It is currently a very difficult time for our company and our industry, but the management and board of Suntech are committed to finding a way forward that will take into account the rights and interests of all of its constituents, including shareholders, note holders, lenders, customers, suppliers and employees," added King.

Suntech meanwhile has secured an approval of 60% of the note holders to curb their rights until 15 May; and added that was unaware of any legal proceedings initiated by any of its holders.

The company has suffered heavy losses with prices of solar equipments declining sharply over the last few years mainly attributed to high growth of solar industry in the country.

Additionally, tax breaks and subsidies by the government to encourage the sector have also affected the majority of the players such as Yingli Green Energy, LDK Solar and Trina Solar; all reporting heavy losses.