US Bankruptcy Court confirms prepack plan for LDK’s US units
Nov 24, 2014 - Chinese photovoltaics (PV) maker LDK Solar Co Ltd (NYSE:LDK) said today that the Bankruptcy Court in Delaware has confirmed the prepackaged plan of reorganisation for the firm’s three US units.
LDK Solar USA Inc, LDK Solar Tech USA Inc and LDK Solar Systems Inc filed for Chapter 11 protection in Delaware last month. The troubled China-based maker of solar photovoltaic (PV) wafers, cells and modules itself filed a petition to reorganise under Chapter 15 after failing to make the August 2013 interest payment on its US dollar-settled senior notes, which reached maturity in February 2014.
In addition to the confirmation order, the US Bankruptcy Court has also entered one that recognises LDK’s provisional liquidation proceeding in the Grand Court of the Cayman Islands as a foreign main proceeding under Chapter 15. An additional order has also been issued to give full force to the Cayman Islands scheme of arrangement in the US.
These are the final rulings LDK needed before it could execute the documents with its creditors and then implement the international restructuring of its offshore liabilities, said Xingxue Tong, interim chairman, president and CEO of the company. LDK now has over USD 700 million (EUR 564.2m) of its offshore claims judicially approved for restructuring, he mentioned.