Leading solar panel maker Wuxi Suntech, a major subsidiary of the New York-listed Suntech Power based in east China's city of Wuxi, declared bankruptcy on Wednesday.

In accordance with China's Bankruptcy Law, The Wuxi City Intermediate People's Court on Wednesday approved Wuxi Suntech's bankruptcy and restructuring following a joint application issued by the company's nine creditor banks on Monday.

The company made no objection to the ruling.

Founded in 2001, Wuxi Suntech supplies for more than 95 percent of Suntech Power's products.

As of February, Wuxi Suntech's credit balance for the local and foreign currencies of the creditor banks totaled 7.1 billion yuan ($1.14 billion), a senior company manager said.

The banks said since the outstanding loans have been overdue and the company did not render a feasible repayment program, bankruptcy will protect their legal interests and maintain social stability to the maximum extent based on market rules and law.

The banks also expect the company to seek a third party for strategic reorganization in order to revive the company, according to the manager.

As one of China's four largest solar module makers, Wuxi Suntech was founded in 2001 by Shi Zhengrong, a prominent solar power scientist. In 2005, Suntech Power Holdings Co Ltd, or Suntech Power, was founded and listed in New York.