LDK Solar Announces Onshore Restructuring
LDK Solar CO., Ltd. recently announced that the Intermediate People’s Court in Xinyu City of Jiangxi Province,pursuant to the Enterprise Bankruptcy Law of the People’s Republic of China, has accepted the applications by Xinyu City Chengdong Construction and Investment Corporation and China National Grid Corporation Ganxi Power Branch against four onshore subsidiaries of LDK Solar in the People’s Republic of China, namely 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., for enforcement of payments in the aggregate amount of Rmb 281,581,675 relating to borrowings and project fees due and payable by the Respondents to Xinyu Chengdong and Rmb 53,473,487 relating to electricity charges due and payable by the Respondents to Ganxi Power and for a bankruptcy restructuring of each of the Respondents.
On November 17, 2015, the Xinyu Intermediate Court declared the commencement of the bankruptcy restructuring of the Respondents and has designated a specially organized “Restructuring Group” within the Xinyu Hi-Tech Industrial Park Management Committee (the “Management Committee”) as the administrator as called for under the PRC Bankruptcy Law, with Mr. Shaorong Xu, Director of the Management Committee, as the responsible person in charge of the administrator and Jiangxi Yaojian Law Firm responsible for specific matters in the bankruptcy restructuring.
The Xinyu Intermediate Court has also instructed that the first creditors’ meetings relating to the bankruptcy restructuring of the four Respondents will be held at 9:00 a.m. and 3:00 p.m. on March 1, 2016 and 9:00 a.m. and 3:00 p.m. on March 2, 2016, each in Xinyu time, in the Cinema Theatre of the Xinyu City Chengbei Convention and Exhibition Centre. These first creditors’ meetings are scheduled to receive the report of the administrator on the status of the bankruptcy restructuring, creditors’ claims as reported and verified, and the financial condition of the Respondents.
“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,” commented Mr. Zhibin Liu, Chairman, President and CEO of LDK Solar. “Nevertheless, we respect our creditors’ rights and interests; we respect our other stakeholders’ rights and interests; and we respect the judicial intervention by the Xinyu Intermediate Court in its attempt to protect the rights and interests of our various stakeholders. We will cooperate with the court and will endeavor to achieve a reasonable and balanced result for LDK Solar and its stakeholders. 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. In this regard, we appreciate the continued support of our wide-ranging stakeholders during our tortuous restructuring and rebuilding process.”