LDK Solar Co., Ltd. in provisional liquidation and its Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited (“the JPLs”) are pleased to confirm that, on April 2, 2014, the Grand Court of the Cayman Islands (the “Cayman Court”), authorized the JPLs to take steps to implement the restructuring of the Company’s offshore liabilities. The Cayman Court also ordered that the winding-up petition be adjourned generally and the provisional liquidation be continued until further ordered by the Cayman Court. With respect to the restructuring, the Cayman Court specifically ordered that:
the JPLs be authorized to cause the Company to enter into a restructuring support agreement (the “Senior Notes RSA”) with certain of the holders of Renminbi-denominated US$-settled 10% Senior Notes due 2014 (the “Senior Notes”);
the JPLs be authorized to cause the Company to enter into a restructuring support agreement (the “Preferred Obligations RSA”) with certain of the holders of Series A Redeemable Convertible Preferred Shares of LDK Silicon & Chemical Technology Co., Ltd. (the “Preferred Obligations”);
the JPLs be authorized to cause the Company to enter into a promissory note and share warrant with Heng Rui Xin Energy (HK) Co., Limited (“HRX”) in respect of the provision by HRX of interim funding up to an aggregate principal amount of US$14 million (the “Interim Financing”). The JPLs are also authorized to cause the Company to issue shares to HRX pursuant to and in accordance with the rights conferred by the promissory note and share warrant; and
the JPLs be authorized to cause the Company to retain Jefferies LLC as financial adviser and to cause the Company to enter into terms of engagement with Ropes & Gray LLP, Harneys, Westwood & Riegels and Houlihan Lokey (Europe) Limited in their capacities as legal and financial advisers to the ad hoc committee of certain of the holders of the Senior Notes.
The Cayman Court order follows the previous announcement by the Company and the JPLs on March 28, 2014 that, following extensive negotiations with its offshore creditors, the Company had received:
signatures to the Senior Notes RSA from the holders of approximately 60% in aggregate principal amount of the Senior Notes;
signatures to the Preferred Obligations RSA from the holders of approximately 79% of the holders of the Preferred Obligations; and
signatures to both the Senior Notes RSA and the Preferred Obligations RSA from the debtors of the Senior Notes and the Preferred Obligations and a majority of the shareholders of the Company.
The JPLs have executed on behalf of the Company the Senior Notes RSA and the Preferred Obligations RSA and both agreements are now effective and binding.
The Cayman Court order represents another significant and positive milestone in restructuring the Company’s offshore liabilities. The JPLs and the Company are continuing to focus on taking all steps necessary to achieve a restructuring on the terms contemplated in the Senior Notes RSA and the Preferred Obligations RSA. The JPLs currently anticipate applying before May 31, 2014 for orders convening meetings of creditors in relation to the restructuring.