Following "productive discussions with its key stakeholders" in China earlier this week, Suntech Power Holdings (NYSE: STP) has reached an understanding with its creditors, including Clearwater Capital and Spinnaker Capital, the company recently announced.

Suntech said it will implement a restructuring plan that includes identifying key assets needed to continue operations, exchanging outstanding debt for equity, setting and adhering to maximum debt levels, and introducing a new investor "that will provide the necessary funding through the purchase of newly issued equity to complete the restructuring process."

Suntech is expected to initialize its restructuring efforts in the coming week, the company said. Though shareholders are likely to see a dilution in value, according to its statement, Suntech's president, Zhou Weiping, said that "we believe that these measures will put us in a better and stronger position to serve our current and future customers in China, Japan, the EU, USA, and around the world."