LDK finally exits insolvency

Chinese-headquartered solar manufacturer LDK Solar‘s long struggle back from provisional liquidation was confirmed by the Grand Court of the Cayman Islands this week.

The grand court of the Caribbean nation where LDK, like many Chinese solar companies, is officially registered, on Tuesday ordered that LDK’s liquidators relinquish their duties on April 21, at which point the solar ingot, wafer, cell and module-maker will close liquidation proceedings.

LDK’s three U.S. subsidiaries – LDK Solar Systems, LDK Solar USA and LDK Solar Tech USA – closed their own provisional liquidation proceedings in February, having renegotiated an offshore debt pile of $700 million.

The parent company is reported to owe Chinese banks – including the state-owned Chinese Development Bank – an onshore debt amounting to some $2 billion.

With the Chinese lenders willing to back the manufacturer, in a move that will further enrage U.S. and European critics who claim the Chinese government is unfairly supporting its big solar players with illegal state subsidies, the way is clear for the restructured LDK to start afresh.