Apr 4, 2014 - Chinese company LDK Solar Co Ltd (NYSE:LDK) said today its joint provisional liquidators have been authorised by the Grand Court of the Cayman Islands to start implementing the offshore debt restructuring plan.
The photovoltaics (PV) maker, which is in provisional liquidation, also said that the Court has adjourned its winding-up petition from February 21 and ordered the provisional liquidation to be continued until further order.
LDK Solar has CNY 1.63 billion (USD 262m/EUR 191m) currently outstanding related to a US dollar-settled senior notes issue completed by the firm in February 2011. The company defaulted on the August 2013 interest payment and has been unable to make it since then. The 10% notes reached maturity in February.
In today’s press release, LDK Solar said its liquidators have been authorised to enter a restructuring deal with certain holders of the CNY-denominated US-settled 10% senior notes maturing in 2014 and holders of Series A redeemable convertible preferred shares of the company’s unit LDK Silicon & Chemical Technology Co. Liquidators received the go-ahead for the signing of a promissory note and share warrant with LDK shareholder Heng Rui Xin Energy (HK) Co for up to USD 14 million (EUR 10.2m) in interim financing, according to the court ruling.
Last month, the Chinese firm said that holders of some 60% of the principal amount of notes have agreed to a restructuring scheme. LDK Solar’s liquidators expect to apply by May 31 for orders convening meetings of creditors under the restructuring scheme. The proceedings do not involve operations in China.
(CNY 1.0 = USD 0.161/EUR 0.117)
(USD 1.0 = EUR 0.730)
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