The US Bankruptcy Court-approved prepack of
China’s LDK Solar completed last week.
It marks the end of a lengthy restructuring process
for over $700 million of offshore claims, and serves lessons
for restructuring ChinaCo offshore debt.
The cross-border reorganisation involved schemes of
arrangement sanctioned by Hong Kong and Cayman Island courts,
as well as the US prepackaged plan under Chapter 11 for LDK
Solar’s three US subsidiaries. It’s
believed to be the first judicially approved,
multi-jurisdictional debt restructuring of its kind for a
LDK is the country’s latest solar cell
manufacturer affected by overcapacity in the sector. Others,
most famously Suntech, have restructured in the past year.
Timothy Li, partner at Sidley Austin who advised LDK Solar,
said that there are lessons to...