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LDK Solar wins court recognition of foreign case, confirmation of plan
By Kali Hays
New York, Nov. 21 – LDK Solar Co., Ltd. received recognition and enforcement of its Cayman Islands scheme of arrangement on Friday under separate orders from the U.S. Bankruptcy Court for the District of Delaware.
A separate court order also confirmed LDK Solar Systems, Inc.’s joint pre-packaged plan of reorganization.
The reorganization plan includes LDK Solar USA, Inc. and LDK Solar Tech USA, Inc. as debtors.
As previously reported, under LDK Solar’s scheme of arrangement, senior noteholders, preferred shareholders and ordinary scheme creditors will receive a cash-out amount and/or non-cash scheme consideration in exchange for their claims.
Under the pre-packaged plan of reorganization, administrative expense claims and priority tax claims will be paid in full in cash, and priority non-tax claims, secured claims, general unsecured claims, intercompany claims and interests will be reinstated.
A majority of senior noteholders voted to accept the reorganization plan, according to a Nov. 18 court filing.
Also under the pre-packaged plan, holders of senior note guarantee claims will receive a scheme senior notes consideration, consisting of equity interests in the parent company in an amount equal to 8.736% to 15% of the claim, calculated at a price of $1.586 per equity unit, and 2018 convertible bonds equal to the remainder of the claim amount or, if there is enough cash, up to 10% of the claim in cash.
Class meetings of scheme creditors of LDK Solar and its LDK Silicon & Chemical Technology Co., Ltd. and LDK Silicon Holding Co., Ltd. subsidiaries approved the company’s Cayman Islands and Hong Kong schemes of arrangement in October.
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 under case number 14-12387. LDK’s U.S. subsidiaries’ Chapter 11 case number is 14-12384.
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