LDK Solar Co., the solar-wafer manufacturer that has missed bond repayments, said liquidators have been appointed to pursue its petition to wind up the business due to insolvency.
A Cayman Islands court scheduled a hearing over its petition to wind up the company to allow creditors to be heard on April 2, LDK said yesterday in a statement. Tammy Fu and Eleanor Fisher of Zolfo Cooper (Cayman) Ltd. were appointed as the liquidators.
LDK Solar is in talks with holders of its 10 percent senior notes due Feb. 28 and convertible preferred shares issued by an affiliate, it said. It expects the discussions to result in two restructuring-support agreements with a majority of holders.
LDK missed a semi-annual payment on the notes in August and sought liquidators last month before the 1.7 billion yuan ($277 million) bond matured. It had $95.4 million in cash at the end of the third quarter, and total debts of about $2.78 billion. The wafer maker in December proposed a restructuring by repaying holders at 20 cents on the dollar or exchanging notes for stock.
LDK doesn’t plan debt restructuring for affiliates in China and its banking group in the country unanimously supports talks with offshore creditor to resolve the liquidity issues, it said.
The company is seeking to avoid the fate of Suntech Power Holdings Co., a Chinese panel producer that defaulted on a $541 million bond last March, leading to bankruptcy proceedings. Suntech filed for bankruptcy protection from U.S. creditors in the Caymans on Feb. 21 and plans to sell its largest unit.