Struggling, debt-laden LDK Solar (LDK) has filed a winding-up (liquidation) petition in the Cayman Islands on grounds of insolvency. Joint provisional liquidators have been appointed by a local court. (PR)
A further hearing of the petition is set for April 2, during which creditors can register complaints. LDK says talks with debtholders remain ongoing.
The company insists it has "no intention of initiating any debt restructuring proceedings" for its Chinese ops, and that its Chinese bank group has "expressed unanimous support" for continued talks with offshore creditors.
LDK had over $2.8B in debt at the end of Q3, and $226M in cash. The company had agreed to a series of debt forbearance deals with creditors before making its filing.