The New York Stock Exchange suspended trading of LDK Solar Co.’s American depositary receipts and initiated proceedings to delist the Chinese solar manufacturer because of “abnormally low” prices.
The NYSE determined the Xinyu, China-based company’s ADRs are no longer suitable for listing, the exchange said today in a statement. They haven’t traded in the U.S. since March 18, when they closed at $1.01.
The company hasn’t reported a profit since the first quarter of 2011, and has struggled under debts it accumulated in recent years to expand its operations and meet demand for solar panels. The second-largest supplier of wafers for solar cells by 2012 capacity, LDK is seeking to restructure its $2.8 billion in debt after failing to pay a 1.7 billion yuan ($273 million) bond that matured Feb. 28.
LDK said March 28 that holders of 60 percent of the principal on that bond had agreed to a restructuring deal. They will get 20 cents on the dollar, or exchange the notes for stock or convertible bonds.
LDK is seeking to avoid the fate of Suntech Power Holdings Co., a Chinese panel producer that defaulted on a $541 million bond in March 2013, leading to bankruptcy proceedings.
Suntech filed a petition for court protection in New York on Feb. 21 to assist a liquidation begun in the Cayman Islands in November. The company plans to sell its largest unit.