Three of Cayman Islands-registered LDK Solar’s US-based subsidiaries are to file for Chapter 11 bankruptcy, supporting attempts to restructure rather than fold the company.
The joint provisional liquidators of LDK Solar said that LDK Solar USA, Inc., LDK Solar Tech USA, Inc. and LDK Solar Systems, Inc., would all apply for Chapter 11 bankruptcy in the US courts.
US Chapter 11 bankruptcy means that the company will attempt to gain agreement with creditors on a restructuring plan with the possibility of recouping a higher percentage of investment over a period of time as the company continues to operate.
Previously disclosed documentation indicated Cayman Islands-registered LDK Solar had little if any cash assets remaining and had to source funds to continue restructuring proceedings in the Cayman Islands.
Major assets of LDK Solar remain in China and outside the US and Cayman Islands proceedings, brought on by failure to meet interest payments of convertible bonds.