LDK Solar, units apply to begin restructuring proceedings in Hong Kong

By Caroline Salls

Pittsburgh, Sept. 8 – LDK Solar Co., Ltd., LDK Silicon & Chemical Technology Co., Ltd. and LDK Silicon Holding Co., Ltd. applied an originating summons to begin restructuring proceedings in the High Court of Hong Kong, according to a news release.

LDK said it is awaiting confirmation of the date of the first hearing before the Hong Kong court. At that hearing, the companies and joint provisional liquidators Tammy Fu and Eleanor Fisher of Zolfo Copper (Cayman) Ltd. will ask the court to schedule an Oct. 17 meeting of scheme creditors to vote on Hong Kong schemes of arrangement.

In addition, LDK Solar, LDK Silicon and the liquidators will ask a Cayman Islands court to schedule an Oct. 16 hearing for approval of Cayman Islands schemes of arrangement in cases announced last month.

On Friday, LDK Solar and LDK Silicon filed evidence in support of their application to the Cayman Court for orders to hold meetings of their scheme creditors, including the proposed explanatory statement relating to the Cayman and Hong Kong schemes of arrangement.

In addition, as a result of the resignation of former chairman Xiaofeng Peng on Aug. 29, LDK said president and chief executive officer Xingxue Tong has assumed the interim chairman position.

To enhance the corporate governance of the company during this interim period, the LDK Solar board of directors established an interim executive committee to supervise and support the work of the interim chairman during the provisional liquidation.

The executive committee is composed of three existing members of the board, including Zhibin Liu, director of Heng Rui Xin Energy (HK) Co., Ltd. and a major LDK Solar shareholder; Tong; and Shi Chen, a board member nominated by major shareholder Fulai Investments Ltd.

The executive committee is led by Liu and is subject to dissolution when a permanent chairman is found.

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

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