LDK Solar seeks support for pre-packaged plan from holders of 10% notes

By Susanna Moon

Chicago, Sept. 18 – LDK Solar CO., Ltd.’s subsidiaries began a solicitation of votes on a pre-packaged plan of reorganization from the holders of its 10% senior notes due 2014, according to a 6-K filing with the Securities and Exchange Commission.

The subsidiaries are LDK Solar USA, Inc., LDK Solar Tech USA, Inc. and LDK Solar Systems, Inc., or the U.S. plan proponents, which plan to implement the pre-packaged plan through Chapter 11 cases.

Holders may vote on the prepackaged plan via Lucid Issuer Services Ltd. by noon ET on Oct. 15.

For more information about the ballot process contact Lucid at ldk@lucid-is.com or Epiq Bankruptcy Solutions, LLC, the U.S. voting agent, at 646 282-2500 or tabulation@epiqsystems.com.

The Hong Kong Court is set to hear the applications on behalf of its company, LDK Silicon and LDK Silicon Holding, on Sept. 23 to convene the class meetings of creditors for the Hong Kong schemes of arrangement on Oct. 17, the filing noted.

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As reported 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.

LDK said it was waiting for 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 Sept. 8, 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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