LDK Solar liquidators working on options for raising exit financing

By Caroline Salls

Pittsburgh, June 27 – LDK Solar Co., Ltd.’s joint provisional liquidators are working with advisers and company management on a number of potential options to raise exit financing, according to a news release.

The exit financing would be used to meet agreed commitments under the company’s senior notes and preferred obligations restructuring support agreements, as well as the costs of LDK’s offshore restructuring process and forecasted offshore working capital requirements.

The liquidators said they are in discussions with a number of parties in connection with the exit financing and remain hopeful that commitments can be secured in the near term.

According to the release, the liquidators will seek binding exit financing commitments before applying to hold meetings of creditors to ensure that the offshore restructuring can be successfully completed.

Any delays in raising the exit financing will impact the timetable for the completion of the offshore restructuring, the release said.

As previously reported, the Grand Court of the Cayman Islands sanctioned the company’s provisional liquidation in February. In April, the court sanctioned LDK’s restructuring support agreements and a commitment letter from Heng Rui Xin Energy (HK) Co., Ltd. for up to $14 million in interim financing.

The liquidators said they encountered delays in obtaining the full amount of the interim financing following the sanction hearing, but they have received a total of $10.8 million in interim financing through a combination of Heng Rui Xin advances and internally generated funds.

The liquidators said the interim financing received to date is sufficient to enable the restructuring to continue to move forward, but further funding is required to complete the restructuring.

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

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