FINANCE

In Depth: China ‘Bad Bank’ Sues Solar Tycoon in U.S.

Published: Dec. 5, 2025 5:07 p.m. GMT+8

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Peng Xiaofeng

One of China’s “Big Four” bad-debt managers has taken the unusual step of suing Chinese businessman Peng Xiaofeng in a U.S. court, seeking enforcement of Chinese judgments against the former solar tycoon who fled the country in 2017 after the collapse of his ventures.

The case could become a test of whether Chinese bad-debt managers can use American courts to recover assets overseas.

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China Cinda Asset Management sued Peng Xiaofeng in California to enforce Chinese court rulings requiring him to repay about $32 million.
The case may set a precedent for Chinese bad-debt managers seeking to recover assets in the U.S., using existing U.S. laws on foreign judgments.
Peng, former LDK Solar tycoon, fled China after business failures and now faces asset seizure in the U.S.; the case is still in early stages.

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Who’s Who

China Cinda Asset Management Co. Ltd.: China Cinda Asset Management Co. Ltd. is one of China's "Big Four" bad-debt managers. Its Jiangxi branch has sued Chinese businessman Peng Xiaofeng in a U.S. court to enforce Chinese judgments totaling approximately $32 million. The lawsuit aims to recover assets from Peng and his wife in the U.S. after they defaulted on loans related to LDK Solar.

LDK Solar: LDK Solar, founded by Peng Xiaofeng in 2005, was a solar energy company that listed on the New York Stock Exchange in 2007. It rapidly expanded, making Peng one of China's richest men. However, hit by the 2008 financial crisis and anti-dumping actions, LDK Solar became heavily indebted, leading to its collapse and a lengthy bankruptcy restructuring.

China Citic Bank: China Citic Bank issued loans in 2015 to three companies related to LDK Solar. Peng Xiaofeng and related entities guaranteed these loans. After the borrowers defaulted, Chinese courts ruled Peng jointly liable between 2017 and 2018. Citic subsequently transferred these claims to China Cinda Asset Management Co. Ltd. in 2023.

Solarbao: Solarbao was an online finance platform launched by Peng Xiaofeng after the collapse of LDK Solar. It promised high returns to investors, but defaulted in 2017, leading to Peng fleeing China.

SPI Energy: SPI Energy is a Nasdaq-listed renewable-energy company. Peng Xiaofeng became its chairman after the collapse of his previous venture, LDK Solar, and his online finance platform, Solarbao.

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What Happened When

2015：: China Citic Bank issues loans to three companies related to LDK Solar, with Peng Xiaofeng and related entities signing guarantees.

2017：: Peng Xiaofeng flees China after the collapse of his ventures and before authorities could detain him; Solarbao, his online finance platform, defaults.

Between 2017 and 2018：: Chinese courts rule that Peng Xiaofeng bears joint liability after borrowers default on the loans.

2023：: Citic transfers the claims against Peng to China Cinda Asset Management Co. Ltd.

Recently in 2025：: Jiangxi branch of China Cinda Asset Management Co. Ltd. files lawsuit in U.S. District Court for the Northern District of California seeking enforcement of Chinese judgments.