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March 3, 2014 /PRNewswire/ -- LDK Solar Co., Ltd. – in provisional liquidation ("LDK Solar" or the "Company"; NYSE: LDK) announces that the Grand Court of the
Cayman Islands appointed
Tammy Fu and
Eleanor Fisher, both partners of Zolfo Cooper (Cayman) Limited of 38 Market Street, 2nd Floor, Canella Court, Camana Bay,
Cayman Islands, as joint provisional liquidators ("JPLs") for the Company on
February 27, 2014. This appointment was made pursuant to a winding-up petition filed by the Company, acting by its directors, on
February 21, 2014 on grounds of insolvency. The Company welcomes the appointment of the JPLs and will work with them to resolve its offshore liquidity issues.
While the Cayman court ordered that no suit, action or proceeding may be brought or commenced against the Company without the permission of the Cayman court, the JPLs have been jointly and severally granted authority, among other things, to (i) promote a scheme of arrangement to present to the Company's creditors and (ii) bring or defend any action or legal proceeding in any jurisdiction in the name and on behalf of the Company. The court order also required the consent of the JPLs and the prior sanction of the Cayman court for the Company to enter into any restructuring support agreement ("RSA") or loan agreement.
The Cayman court also instructed a further hearing of the winding-up petition and the summons pursuant to which it was ordered that provisional liquidators be appointed to take place at the Law Courts,
Grand Cayman, on
Wednesday, April 2, 2014 at
10.00 a.m. (Cayman time) to allow creditors of the Company (including contingent and future creditors) to appear by counsel and be heard, upon 7-days' prior notice to the Company's Cayman attorneys, Campbells of Floor 4,
Willow House, Cricket Square, PO Box 884, Grand Cayman KY1-1103,
Cayman Islands. Copies of the winding-up petition, the summons for the appointment of provisional liquidators, the supporting affidavits, counsel's written submission and the order made on
February 27, 2014 may be obtained (in hard copy or electronic form) from the Company's Cayman attorneys as well.
The discussions between LDK Solar and holders of Renminbi-denominated US$-settled 10% Senior Notes due
February 28, 2014 (the "Senior Notes") as well as holders of the convertible preferred shares issued by a Company affiliate and involving claims against the Company (the "Preferred Obligations") are on-going. Subject to the Cayman court sanction, it is anticipated that the Company will enter into two RSAs with a majority of the holders of each of the Senior Notes and the Preferred Obligations.
The Company has no intention of initiating any debt restructuring proceedings in respect of the LDK Solar-affiliated entities operating in
the People's Republic of China. The Company's bank group for its mainland
China operations has expressed unanimous support for the Company's continued discussions with its offshore creditors with a view to resolving its offshore liquidity issues.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the projected financial information provided herein, LDK Solar's ability to raise additional capital to finance its operating activities, its ability to achieve a consensual solution to its onshore and offshore liabilities, the effectiveness, profitability and marketability of its products, the future trading of its securities, the ability of LDK Solar to operate as a public company, the period of time during which its current liquidity will enable LDK Solar to fund its operations, its ability to protect its proprietary information, the general economic and business environment and conditions, the volatility of LDK Solar's operating results and financial condition, its ability to attract and retain qualified senior management personnel and research and development staff, its ability to timely and efficiently complete its ongoing projects, and other risks and uncertainties disclosed in LDK Solar's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on information available to LDK Solar's management as of the date such information was prepared and on its expectations, assumptions, estimates and projections about LDK Solar and the PV industry as of such date. Actual results may differ materially from the anticipated results because of such and other risks and uncertainties. LDK Solar undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, assumptions, estimates and projections except as may be required by law.