LDK Solar Threatening Bondholders With Offshore Insolvency

The drawn-out period of forbearance agreements between LDK Solar and US bondholders looks over and the heavily indebted PV manufacturer could start insolvency proceedings in the Cayman Islands should bondholders not agree on a settlement, PV-Tech reported. LDK Solar said that it had made considerable progress with its key offshore creditors in line with two options, both proving hard for creditors of its convertible notes to bear. The company said that it remained optimistic about reaching a settlement in the next few days. However, LDK Solar is threatening to start bankruptcy proceedings in the Cayman Islands where the holding company is registered but actually has few tangible assets. The company has applied for the appointment of a provisional liquidator through the Grand Court of the Cayman Islands. Possible insolvency proceedings in the Cayman Islands would enable the company to apply for US Chapter 15 bankruptcy alone the same lines as Suntech Power Holdings. Read more.