LDK Solar strikes restructuring deal, gets interim financing

|About: LDK Solar Co., Ltd. (LDK)|By:, SA News Editor

Holders owning 60% of LDK Solar's (LDK) 10% senior notes due 2014, and 79% of its convertible preferred shares, have backed a restructuring deal for the company's offshore assets.

Both the senior note and preferred share holders are being offered $0.20 on the dollar in cash (subject to $50M claim caps), along with equity equal to 8.736%-15% of the claim (paid at $1.586/share) and convertible bonds yielding 5.535%.

LDK has also received a commitment letter from shareholder HRX to provide up to $14M in interim financing.

A Cayman Islands court will evaluate the deal "on or around" April 2. LDK filed a liquidation petition in the Cayman Islands roughly a month ago.

Shares have been halted since Feb. 24.