GEORGE TOWN, Cayman Islands,
XINYU CITY, China and SUNNYVALE, Calif., July
31, 2014 /PRNewswire/ -- LDK Solar Co., Ltd. in
provisional liquidation ("LDK Solar" or the "Company") and its
Joint Provisional Liquidators ("JPLs"), Tammy Fu and Eleanor
Fisher, both of Zolfo Cooper (Cayman) Limited, today
announced that LDK Solar has secured funding commitments to enable
the offshore restructuring to continue to be progressed. The JPLs
now intend to seek sanction of the Grand Court of the Cayman Islands (the "Cayman Court") to the
terms of the funding commitments and certain amendments to
restructuring support agreements previously approved by the Cayman
Court. The JPLs also provided an update on the progress of the
restructuring in light of recent positive developments in the
course of the Company's offshore restructuring.
Funding Commitments
On June 27, 2014, the JPLs
confirmed that they continued to consider and progress discussions
with a number of parties in respect of the provision of funding
required to meet the agreed commitments pursuant to the
restructuring support agreement relating to the 10% Senior Notes
due 2014 (the "Senior Notes RSA"), the restructuring support
agreement relating to the convertible preferred shares of an
affiliate of the Company and involving claims against the Company
(the "Preferred Obligations RSA"), as well as the costs of the
offshore restructuring process and the forecast offshore working
capital requirements of the Company (the "Exit Financing").
On July 15, 2014, the JPLs
received a binding commitment from Heng Rui Xin Energy (HK) Co.,
Limited ("HRX") for US$10 million in
cash and US$14 million for working
capital financing in connection with the Company's offshore
restructuring. In addition, the Company and the JPLs have
identified a further US$5 million of
funding which is to be committed by certain subsidiaries of the
Company to the offshore restructuring. Subject to approval by
the Cayman Court, the JPLs now consider that these funding
commitments will be sufficient to meet the Exit Financing
requirements of the offshore
restructuring.
Since their announcement on June 27,
2014 and in addition to the Exit Financing, the JPLs have
also received an additional US$3.2
million of interim financing for the provisional liquidation
from the partial repayment of outstanding intercompany
receivables.
RSA Amendments
As a result of the challenges in raising the Exit Financing and
the resultant delay in the timetable for completing the
restructuring, LDK Solar and the JPLs have reached agreements with
the Ad-Hoc Committee for the Company's 10% Senior Notes due 2014
(the "Senior Claims"), over 79% of the holders of the convertible
preferred shares of an affiliate of the Company involving claims
against the Company (the "Preferred Claims") and a majority of
shareholders of the Company to certain amendments to the Senior
Notes RSA and the Preferred Obligations RSA. Subject to approval by
the Cayman Court, the Senior Notes RSA and the Preferred
Obligations RSA have been amended as of July
30, 2014 (the "RSA Amendments") as follows:
- To extend the closing date for the offshore restructuring to no
later than September 30, 2014,
subject to an automatic extension to November 14, 2014 if the Company files its scheme
of arrangement with the Cayman Court on or before August 31, 2014;
- To reduce the cash-out option for the holders of Senior Claims
and Preferred Claims from US$0.20 to
US$0.10 for each US$1.00 of
claim and to make the availability of that option to such creditors
subject to the Company determining that funding is available;
and
- To permit the Company to compromise with other offshore
creditors with a combination of cash and/or equity and convertible
securities, subject to agreed limitations.
2013 Form 20-F
LDK Solar and the JPLs have reached an agreement dated
July 15, 2014 with the Company's
existing auditor, KPMG, to engage the latter to complete the audit
of the Company's consolidated accounts for fiscal year 2013.
The Company anticipates that this will enable it to file its annual
report on Form 20-F for the year ended December 31, 2013 on or before October 31, 2014.
Cayman Court Sanction
In light of these developments, the JPLs are seeking sanction by
the Cayman Court of the RSA Amendments and the various financing
commitments. Subject to such Cayman Court sanction, the JPLs expect
to be in a position to proceed with its application to the Cayman
Court for orders convening meetings of creditors in relation to the
offshore restructuring on or before August
31, 2014.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including risks and uncertainties disclosed in LDK
Solar's filings with the Securities and Exchange Commission. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on information available to LDK Solar's
management as of the date such information was prepared and on its
expectations, assumptions, estimates and projections as of such
date. Actual results may differ materially from the anticipated
results because of such and other risks and uncertainties. LDK
Solar undertakes no obligation to update forward-looking statements
to reflect subsequent events or circumstances, or changes in its
expectations, assumptions, estimates and projections except as may
be required by law.
About LDK Solar in provisional liquidation
LDK Solar Co., Ltd. in provisional liquidation is a
leading vertically integrated manufacturer of photovoltaic (PV)
products. LDK Solar, through its operating subsidiaries,
manufactures polysilicon, mono and multicrystalline ingots, wafers,
cells, modules, systems, power projects and solutions. LDK Solar's
principal manufacturing facilities are located in Hi-Tech
Industrial Park, Xinyu City, Jiangxi
Province in the People's Republic
of China. LDK Solar's subsidiary office in the United States is located in Sunnyvale, California. For more information
about LDK Solar and its products, please visit
www.ldksolar.com.
SOURCE LDK Solar Co., Ltd.