China-based polysilicon and PV module manufacturer LDK Solar has been forced into bankruptcy proceedings in China soon after it had exited bankruptcy proceedings of its parent holding company that was once listed in the US.
A web of LDK Solar subsidiary companies in China that had indirect investment from the likes of major China-based renewables enterprises such as Shunfeng, which had previously acquired bankrupt Suntech, once the largest PV module manufacturer in the world are impacted by the developments.
On November 17, 2015, the Xinyu Intermediate Court was said to have declared the commencement of the bankruptcy restructuring, which will start on March 1, 2016.
"It is regrettable that we have come to this inevitable juncture on our onshore financial crossroads, despite the tremendous efforts we have made in order to make progress in our onshore financial restructuring subsequent to our successful offshore financial restructuring," commented Mr. Zhibin Liu, Chairman, President and CEO of LDK Solar. "Nevertheless, we respect our creditors' rights and interests; we respect our other stakeholders' rights and interests; and we respect the judicial intervention by the Xinyu Intermediate Court in its attempt to protect the rights and interests of our various stakeholders. We will cooperate with the court and will endeavor to achieve a reasonable and balanced result for LDK Solar and its stakeholders. As far as the LDK Solar management is concerned, we continue to be determined to work hard in the current and forthcoming economic environment, to meet our challenges ahead in our onshore restructuring, and to build our company up into a reputable player in the photovoltaic industry. In this regard, we appreciate the continued support of our wide-ranging stakeholders during our tortuous restructuring and rebuilding process."
Subsidiaries of LDK Solar in China that have been forced into bankruptcy by creditors include the following:
Jiangxi LDK Solar Hi-Tech Co., Ltd., LDK Solar Hi-Tech (Xinyu) Co., Ltd., Jiangxi LDK PV Silicon Technology Co., Ltd. and Jiangxi LDK Solar Polysilicon Co., Ltd.
The actions against LDK Solar were brought about by Xinyu City Chengdong Construction and Investment Corporation ("Xinyu Chengdong") and China National Grid (Jiangxi Province) Corporation Ganxi Power Branch ("Ganxi Power" and, together with Xinyu Chengdong.
Debts owed amounted to over US$44 million Rmb 281,581,675 and US$8.3 million to electricity charges due Ganxi Power.