LDK Solar nabs USD 24m in funds for offshore restructuring
Aug 1, 2014 - Chinese photovoltaics (PV) maker LDK Solar Co Ltd (NYSE:LDK) said yesterday it had obtained some USD 24 million (EUR 18m) in funding from a shareholder to proceed with its offshore debt restructuring plan.
Heng Rui Xin Energy (HK) Co Ltd (HRX) has committed to provide USD 10 million in cash plus a further USD 14 million for working capital financing. Moreover, an additional USD 5 million will be committed by subsidiaries of the PV manufacturer.
The company said its joint provisional liquidators believe that the combined sum would be enough to meet the exit financing requirements of LDK’s offshore restructuring, subject to clearance by the Grand Court of the Cayman Islands.
LDK was placed in provisional liquidation in the US after it failed to make the August 2013 interest payment on its US dollar-settled senior notes, which reached maturity in February 2014.
The company now intends to extend the closing for the offshore restructuring to September 30, 2014 at the latest. It may also apply for an automatic extension until November 14, 2014, it said.