Embattled Chinese PV giant LDK Solar said it has filed for the appointment of provisional liquidators in the Cayman Islands, days before the latest deadline expires for a much-postponed bond payment.
LDK said it
has filed with the Grand Court of the Cayman Islands, where the company is
connection with its plans to resolve its offshore liquidity issues”.
A previous interest
payout on the bond was due last August, and LDK has since negotiated a string
of “forbearance” extensions with its creditors while it tries to restructure its
loans. The latest deadline is on Friday (28 February).
Despite the court
filing, the PV manufacturer claimed it “has
made considerable progress in its discussions with its key offshore
creditors...LDK Solar intends to continue such discussions over the next
few days and anticipates a favourable conclusion to those discussions”.
Analysts said the
situation has echoes of the path trodden by fellow Chinese PV struggler Suntech,
which filed for provisional liquidation in the Caymans last November.
But LDK – which has a total
debt mountain in the range of $2.5bn – insists the move does not mean its
operating units in China are poised to follow suit.
Its statement said: “The
filing and the proposed appointment do not affect any of the LDK
Solar-affiliated entities operating in the People's Republic of China and LDK
Solar has no intention of initiating any additional debt restructuring
proceedings in that jurisdiction.
“LDK Solar's bank group
for its mainland China operations has expressed unanimous support for LDK
Solar's continued discussions with its offshore creditors with a view to
resolving its offshore liquidity issues.”