LDK Solar subsidiaries file for bankruptcy protection in US court

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Troubled Chinese PV manufacturer LDK Solar filed for bankruptcy in the United States on Tuesday.

The company, which is currently undergoing restructuring in Hong Kong and the Cayman Islands, filed for Chapter 15 protection (used by foreign companies) in Wilmington, Delaware, listing about $1.13 billion in debt and $510 million in assets as of May 31, according to Bloomberg.

The company’s U.S. subsidiaries, LDK Solar Systems, Inc., LDK Solar USA, Inc., and LDK Solar Tech USA, Inc., each filed for chapter 11 protection — a move that had been expected.

Tammy Fu, a provisional liquidator for LDK in Grand Cayman, said in a court filing that the company’s financial performance had "significantly deteriorated" in the past three years due to overcapacity in the solar cell market.

The Grand Court of the Cayman Islands will consider proposals for LDK’s restructuring with its Hong Kong High Court counterpart set to examine plans for LDK operations in the territory on November 6 and 7, respectively.