LDK Solar gets OK to take steps in offshore liabilities restructuring

By Kali Hays

New York, April 4 - LDK Solar Co., Ltd. and its joint provisional liquidators, Tammy Fu and Eleanor Fisher of Zolfo Cooper, were authorized to take steps in implementing the restructuring of the company's offshore liabilities by the Grand Court of the Cayman Islands on Wednesday, according to a Friday news release from the company.

Specifically, the court ordered that the company enter into a restructuring support agreement with some holders of its renminbi-denominated, dollar-settled 10% senior notes due 2014 and with holders of series A redeemable convertible preferred shares of LDK Silicon & Chemical Technology Co., Ltd.

The company's winding-up petition was adjourned by the court, and its provisional liquidation will be continued "until further ordered by the Cayman Court," the release stated.

The court also ordered that the company retain Jefferies LLC as its financial adviser along with Ropes & Gray LLP, Harneys, Westwood & Riegels, and Houlihan Lokey Limited as legal counsel and financial advisers to its informal committee of senior noteholders, according to the release.

Fu and Fisher also obtained authorization to enter the company into a promissory note and share warrant with Heng Rui Xin Energy (HK) Co. Ltd., which will provide the company with up to $14 million of interim financing.

The company has received signatures "to both the senior notes [restructuring support agreement] and the preferred obligations [restructuring support agreement] from the debtors of the senior notes and the preferred obligations and a majority of the shareholders of the company," the release stated.

As previously reported, the company claims to have gotten restructuring support agreement signatures from about 60% in aggregate principal amount of the company's senior notes and the holders of about 79% of the convertible preferred shares.

Fu and Fisher are currently planning to convene "meetings of creditors in relation to the restructuring" before May 31.

LDK Solar is a manufacturer of photovoltaic products based in Xinyu City, China.

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