LDK Solar welcomes appointment of joint provisional liquidators in Cayman Islands
Tuesday, Mar 04, 2014
LDK Solar Co., Ltd. – in provisional liquidation ("LDK Solar" or the "Company"; NYSE: LDK) announces that the Grand Court of the Cayman Islands appointed Tammy Fu and Eleanor Fisher, both partners of Zolfo Cooper (Cayman) Limited of 38 Market Street, 2nd Floor, Canella Court, Camana Bay, Grand Cayman, Cayman Islands, as joint provisional liquidators ("JPLs") for the Company on February 27, 2014. This appointment was made pursuant to a winding-up petition filed by the Company, acting by its directors, on February 21, 2014 on grounds of insolvency. The Company welcomes the appointment of the JPLs and will work with them to resolve its offshore liquidity issues.
While the Cayman court ordered that no suit, action or proceeding may be brought or commenced against the Company without the permission of the Cayman court, the JPLs have been jointly and severally granted authority, among other things, to (i) promote a scheme of arrangement to present to the Company's creditors and (ii) bring or defend any action or legal proceeding in any jurisdiction in the name and on behalf of the Company. The court order also required the consent of the JPLs and the prior sanction of the Cayman court for the Company to enter into any restructuring support agreement ("RSA") or loan agreement.
The Cayman court also instructed a further hearing of the winding-up petition and the summons pursuant to which it was ordered that provisional liquidators be appointed to take place at the Law Courts, Grand Cayman, on Wednesday, April 2, 2014 at 10.00 a.m. (Cayman time) to allow creditors of the Company (including contingent and future creditors) to appear by counsel and be heard, upon 7-days' prior notice to the Company's Cayman attorneys, Campbells of Floor 4, Willow House, Cricket Square, PO Box 884, Grand Cayman KY1-1103, Cayman Islands. Copies of the winding-up petition, the summons for the appointment of provisional liquidators, the supporting affidavits, counsel's written submission and the order made on February 27, 2014 may be obtained (in hard copy or electronic form) from the Company's Cayman attorneys as well.
The discussions between LDK Solar and holders of Renminbi-denominated US$-settled 10% Senior Notes due February 28, 2014 (the "Senior Notes") as well as holders of the convertible preferred shares issued by a Company affiliate and involving claims against the Company (the "Preferred Obligations") are on-going. Subject to the Cayman court sanction, it is anticipated that the Company will enter into two RSAs with a majority of the holders of each of the Senior Notes and the Preferred Obligations.
The Company has no intention of initiating any debt restructuring proceedings in respect of the LDK Solar-affiliated entities operating in the People's Republic of China. The Company's bank group for its mainland China operations has expressed unanimous support for the Company's continued discussions with its offshore creditors with a view to resolving its offshore liquidity issues.
Source: LDK Solar Co., Ltd.