LDK Solar onshore units in bankruptcy restructuring; payments enforced

By Caroline Salls

Pittsburgh, Nov. 18 – LDK Solar Co., Ltd. said the Intermediate People's Court in Xinyu City of Jiangxi Province accepted the applications of Xinyu City Chengdong Construction and Investment Corp. and China National Grid (Jiangxi Province) Corp. Ganxi Power Branch against four LDK onshore subsidiaries for enforcement of payments due and the bankruptcy restructuring of the onshore subsidiaries.

According to a news release, the onshore subsidiaries are Jiangxi LDK Solar Hi-Tech Co., Ltd., LDK Solar Hi-Tech (Xinyu) Co., Ltd., Jiangxi LDK PV Silicon Technology Co., Ltd. and Jiangxi LDK Solar Polysilicon Co., Ltd.

LDK said the payments being enforced include RMB 281.5 million in borrowings and fee payments and RMB 53.47 million in electricity charge payments.

The court also accepted Xinyu City Chengdong Construction and China National Grid’s request for a bankruptcy restructuring of each of the onshore subsidiaries.

LDK said the court designated a specially organized restructuring group within the Xinyu Hi-Tech Industrial Park management committee as the administrator, with management committee director Shaorong Xu serving as the responsible person in charge of the administrator and Jiangxi Yaojian Law Firm responsible for specific matters in the bankruptcy restructuring.

The first creditors’ meetings will be held on March 1 and March 2 to receive the report of the administrator on the status of the bankruptcy restructuring, creditors’ claims and the financial condition of the subsidiaries.

“It is regrettable that we have come to this inevitable juncture on our onshore financial crossroads, despite the tremendous efforts we have made in order to make progress in our onshore financial restructuring subsequent to our successful offshore financial restructuring,” LDK chairman, president and chief executive officer Zhibin Liu said in the release.

“As far as the LDK Solar management is concerned, we continue to be determined to work hard in the current and forthcoming economic environment, to meet our challenges ahead in our onshore restructuring and to build our company up into a reputable player in the photovoltaic industry.”

LDK Solar is a manufacturer of photovoltaic products and is based in Xinyu City, China. The company made a Chapter 15 bankruptcy filing on Oct. 21, 2014 under case number 14-12387. LDK’s U.S. subsidiaries’ Chapter 11 case number is 14-12384.

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