Beleaguered Chinese solar giant LDK Solar has signalled its intention to start Chapter 11 bankruptcy proceedings for three of its U.S. subsidiaries.
Holders of LDK 10% senior notes due this year will vote, by October 15, on whether to start the bankruptcy process for LDK Solar USA, LDK Solar Tech USA and LDK Solar Systems Inc.
The bankruptcy proceedings form part of the Cayman Islands-registered company’s attempts to reorganize its offshore operations through ‘schemes of arrangement’.
The prospective reorganization of the heavily indebted LDK Solar, and subsidiary LDK Silicon and Chemical Technology, will be voted on by creditors on October 16 (Cayman Islands time) and 17 (Hong Kong time).
The reorganization plan will be heard by the Grand Court of the Cayman Islands on November 6.
The next court date for LDK Solar, which is in provisional liquidation, is on Tuesday, when the High Court of Hong Kong will hear the reorganization plans of the company, together with LDK Silicon and LDK Silicon Holding Co.