A bankruptcy court in Delaware, USA, will consider a request for Chapter 11 protection by the U.S. subsidiaries of embattled Chinese solar manufacturer LDK Solar next month.
Under the terms of a proposed restructuring of LDK voted through ‘overwhelmingly’ by the holders of 10% senior notes in the company due this year the parent company is seeking bankruptcy protection for its three U.S. subsidiaries during the restructure.
On Wednesday the U.S. Bankruptcy Court for the district of Delaware granted permission for the three subsidiaries LDK Solar Systems Inc., LDK Solar USA Inc. and LDK Solar Tech USA Inc. to continue trading until it considers the bankruptcy request on November 21.
A request for the court to recognise insolvency proceedings for the parent company in the Grand Court of the Cayman Islands, where the Chinese manufacturer is registered, will be considered on the same day.
The announcement of the developments by LDK Solar on its website on Wednesday added the parent company hopes to complete its reorganization by the end of the year.