Solar thermal magazine LDK Solar is Delisted from the New York Stock Exchange
The New York Stock Exchange (NYSE) said Monday that it will delist the American depositary shares (ADS) of China-based solar company LDK Solar Co. Trading will be suspended immediately. It found that LDK Solar “is no longer suitable for listing based on ‘abnormally low’ price indications” for its ADSs. LDK’s last trade (on Feb. 21) was at $1.01. The company is seeking to restructure nearly $3 billion in debt after failing to pay a bond that matured in late February.
In response to the announcement by the NYSE, LDK’s Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman ) Limited issued a statement reiterating their commitment to continuing to work with LDK Solar’s offshore creditors to achieve the restructuring of LDK Solar’s offshore liabilities:
The JPLs are evaluating all of their options with respect to the NYSE’s announcement, and are greatly encouraged by the significant progress made since their appointment on February 27, 2014 towards achieving an offshore restructuring. As announced by the Company on March 28, 2014, restructuring support agreements have been signed by holders of approximately 60% in aggregate principal amount of the Company’s 10% Senior Notes due 2014 (the “Senior Notes RSA”) and by holders of approximately 79% of the convertible preferred shares issued by an affiliate of the Company and involving claims against the Company (the “Preferred Obligations RSA”). As also announced by LDK Solar on March 28, 2014, the Company has obtained a signed commitment letter from Heng Rui Xin Energy (HK) Co., Limited, an existing shareholder of the Company, to provide interim financing (the “Interim Financing”) up to an aggregate principal amount of US$14 million.
The execution of both the Senior Notes RSA and the Preferred Obligations RSA together with the commitment to the Interim Financing represent a significant and positive step for the Company in its efforts to restructure its offshore obligations, and the JPLs intend to seek the sanction of the Cayman court for LDK Solar to enter into the Senior Notes RSA, the Preferred Obligations RSA and the Interim Financing at a hearing scheduled for April 2, 2014.
A further announcement will be made by the Company following the hearing on April 2, 2014.
About LDK Solar in provisional liquidation
LDK Solar Co., Ltd. in provisional liquidation is a leading vertically integrated manufacturer of photovoltaic (PV) products. LDK Solar, through its operating subsidiaries, manufactures polysilicon, mono and multicrystalline ingots, wafers, cells, modules, systems, power projects and solutions. LDK Solar’s principal manufacturing facilities are located in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province in the People’s Republic of China. LDK Solar’s subsidiary office in the United States is located in Sunnyvale, California. For more information about LDK Solar and its products, please visit www.ldksolar.com.
SOURCE LDK Solar Co., Ltd.
Tags: Cayman Islands, china, ldk solar, NYSE
