LDK Solar requests case closure; pre-packaged plan effective Dec. 11

By Caroline Salls

Pittsburgh, Jan. 28 – LDK Solar Systems, Inc. requested entry of a final decree closing its Chapter 11 cases, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said its joint pre-packaged plan of reorganization took effect on Dec. 11. The plan was confirmed on Nov. 21.

Given its progress in implementing the plan since the effective date, including cancelling senior notes and making distributions on senior notes guarantee claims, LDK said the cases should be closed.

As previously reported, under the plan, administrative expense claims and priority tax claims will be paid in full in cash, and priority non-tax claims, secured claims, general unsecured claims, intercompany claims and interests will be reinstated.

In addition, holders of senior note guarantee claims will receive a scheme senior notes consideration, consisting of equity interests in the parent company in an amount equal to 8.736% to 15% of the claim, calculated at a price of $1.586 per equity unit, and 2018 convertible bonds equal to the remainder of the claim amount or, if there is enough cash, up to 10% of the claim in cash.

A hearing on the case closure request is scheduled for Feb. 19.

LDK Solar is a manufacturer of photovoltaic products and is based in Xinyu City, China. The company made a Chapter 15 bankruptcy filing on Oct. 21 under case number 14-12387. LDK’s U.S. subsidiaries’ Chapter 11 case number is 14-12384.

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