Mar 3, 2014 - The Grand Court of the Cayman Islands has appointed joint provisional liquidators for LDK Solar Co Ltd (NYSE:LDK) in response to the Chinese photovoltaics (PV) maker's winding-up petition from February 21.
LDK Solar said on Monday that the court has appointed on February 27 Tammy Fu and Eleanor Fisher from Zolfo Cooper (Cayman) Ltd as joint provisional liquidators. The company said it will collaborate with the liquidators to solve its offshore debt issues and pointed out that the proceedings do not involve its operations in China. It does not intend to start any debt restructuring programmes at home.
In August 2013, LDK Solar failed to make the interest payment on US dollar-settled senior notes that reached maturity last month. The CNY 1.2 billion (USD 195m/EUR 142m) worth of notes with a 10% annual coupon were sold in February 2011. The coupon for August 28, 2013 remains unpaid and the solar products maker has already signed seven forbearance deals with bondholders. Right after Christmas, LDK presented a draft restructuring proposal giving two options -- exchange of securities or a cash-out -- to the holders of the 10% notes.
The Cayman court has scheduled a further hearing of LDK’s winding-up petition and the summons for the appointment of provisional liquidators on April 2. LDK said today that the negotiation with major offshore creditors as regards to the restructuring proposal is still in progress. It expects to enter into two restructuring support agreements with most of the senior notes holders.
(CNY 1.0 = USD 0.163/EUR 0.118)
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