Former integrated PV manufacturer LDK Solar has entered liquidation proceedings in the Cayman Islands, while its mainland China assets undergo restructuring.
The Cayman Islands registered LDK Solar entity previously entered bankruptcy proceedings in early 2014 after failing to repay a US convertible bond. After a lengthy restructuring the company exited insolvency proceedings in April, 2015.
Unlock unlimited access for 12 whole months of distinctive global analysis
Photovoltaics International is now included.
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Unlimited digital access to the PV Tech Power journal catalogue
- Unlimited digital access to the Photovoltaics International journal catalogue
- Access to more than 1,000 technical papers
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Or continue reading this article for free
However, LDK Solar’s China operations remained loss making and carried debts unpaid of over US$1.4 billion and no access to any meaningful credit facilities in China. Liabilities totalled over US$2.9 billion in the first-half of 2015, according to financial statements. Cayman Islands registered LDK Solar had no assets.
The Grand Court of the Cayman Islands has appointed FTI Consulting as liquidators of the Cayman Islands registered LDK Solar, however it remains unclear what restructuring will be carried out with its China-based subsidiaries.
Previously, investment firm Fulai, owned by Kin-Ming Cheng, a major shareholder of Shunfeng International Clean Energy (SFCE) secured a major shareholding in LDK Solar’s China-based operations and undertook intra-company sales in 2014 and to a lesser extent in 2015. LDK Solar’s China-based subsidiaries are also in debt to SFCE.
