LDK LDK: restructuring, change may come again?

Polaris solar PV net news: October 17, LDK LDK and its two other subsidiaries of creditors voted to approve the company’s reorganization plan. Subsequently, the plan will be submitted to the courts of Hong Kong and the Cayman Islands. Grand Court of the Cayman Islands and Hong Kong, respectively, in the High Court on November 6 and 7th review plans. The latest news is, based on the United States 15th chapter of provisions on the protection of the Bankruptcy Act, LDK LDK in local time on October 21 to Wilmington, United States Bankruptcy Court bankruptcy filings.

In September, LDK LDK three other subsidiaries in the United States, including the United States, LDK Solar, United States, LDK Solar and LDK Solar has initiated Chapter 11 bankruptcy proceedings.

Disaster for fly, stretches for over a year, LDK LDK decided to prostrate, give up subsidiaries in the United States.

Debt crisis became the LDK LDK clouds overhead. Insiders said that only in April 2013, the LDK mired in debt accumulation has no less than 20 billion yuan of short-term debt, total liabilities at the height can be as high as $ 5.42 billion, equivalent to about 33.5 billion yuan, asset-liability ratio 102.7%. Prior to this, in order to solve the problem of funds, LDK LDK has repeatedly sold assets to raise equity financing. In order to obtain funding, LDK sold one-third assets. Changzhou shunfeng photovoltaic PV Zheng JianMing had blood transfusions twice in a row, the total number of shares that he reached 42 million, equivalent to LDK Solar’s total capital stock of 21.6%. On April 16, 2013, the LDK LDK announced due to shortage of cash flows of the company for the time being, will not be able to pay about $ 24 million of bonds due April 15, is a microcosm of its severe debt crisis.

Through 2013, the year ended May 31, company debt for about $ 1.13 billion, assets of $ 510 million. The largest unsecured creditors listed in the bankruptcy file including Bank of New York Mellon and the Nanchang branch of China Development Bank, which is trustee of $ 284.7 million senior notes due this year, which is owed $ 17.9 million. Saiweizhen could not survive it?

Mahon polysilicon plant production

As the biggest culprits of LDK LDK heavy losses, Mahon polysilicon factories to stop production for a long time. This has three production lines 5000 tons of polycrystalline silicon project, had hosted the LDK LDK’s dream. In order to seek a breakthrough, Mahon announced production of Silicon material plant. The morning of August 13, with the restored stove slowly lifted, LDK LDK Mahon Silicon factory after the first cycle after delivery smooth Silicon material published. To reduce production costs, LDK LDK Mahon polysilicon factory cooled hydride project was launched reform. Announced production at the same time, LDK LDK President and CEO tongxingxue expressed his expectations and hopes in the LDK LDK’s condition gradually improved business, growing autologous hematopoietic function, capacity utilization has steadily increased, and wafer, cell and module production processes to achieve positive cash flow, on the road to rebirth.

However, Tong XING Xue Hao yan has not been promising. Domestic one of the people familiar with the situation said, even with cold hydrogen project LDK LDK transformation, helps to reduce some costs. But the earlier investment costs too high, industrial electricity prices in Northwest China lack advantages expected product costs cannot be lower than the current cost of major domestic manufacturers, competitiveness is weak. Saiweimahong project production costs of up to us $ 40/kg before, even after the transformation of cold hydrogen is difficult to low enough levels.

Moreover, the closed cycle there is bruising of the project and lower follow-up costs can be a problem. Especially the hydrogenated short Board, resulting in high efficiency and low energy consumption of hydrogen, hydrogen capability alone is insufficient, Silicon tetrachloride by-product cannot be converted into raw trichlorosilane, outsourcing maintenance of trichlorosilane production only, further increases the cost.

However, the LDK re-opened Mahon Silicon hydride-renovation projects invested more than 400 million, work together to solve the problem. After stage volume is expected next year, although the price advantages, also is likely to rock the market. LDK frozen assets can be invigorated, at that time.

Push change reorganization

On August 29, the LDK LDK announced that its founder and former Chairman of LDK with immediate effect resigned from the posts of Chairman and Director, but will remain as a Senior Adviser and Honorary Chairman; current President and CEO of XING Xue Tong served as interim Chairman. Bulletin also shows that LDK LDK will form a selection committee chooses its next Chairman, LDK LDK official says, “its timing and candidates, now hard to predict, it depends on developments in the next practice in reality. “But the interim Chairman tongxingxue guide LDK LDK to its overseas debt restructuring completed.

2007 at the invitation of LDK, Tong XING Xue joined the LDK LDK. Tongxingxue has since been billed as LDK LDK “second person”, its in the solar industry for more than 15 years of experience in company management and operation. Prior to joining LDK LDK, tongxingxue GT-SOLAR company starting from the 2004 Asia-Pacific regional business General Manager, Asia-Pacific market ingot furnace is responsible for sales. In 2004, he served as CSI (solar) business executives, as well as during the 1999 to 2004 period, Baoding Yingli also served as Deputy General Manager. Can say in the solar photovoltaic industry has a wealth of experience and achievement.

Tongxingxue a known identity of CEO of LDK LDK. According to public information, after the tongxingxue took over as CEO, LDK LDK with sinoma international, xindaxin, and Shanghai, China qianjiang group signed a cooperation agreement, respectively, in cooperative development of solar photovoltaic power plant, on matters such as debt restructuring agreement, as well as stock purchase deal. Among them, the LDK LDK 14MW of transfer to xindaxin three solar power projects in order to repay $ 140 million yuan in accounts payable, 6 years later again from LDK LDK repurchase, while Anhui LDK LDK qianjiang group in Shanghai by selling all shares received 25 million dollars of financing, also sell discontinued Hefei subsidiary, gave the group a few billion contribution.

In fact, the Tong Hing snow through the transfer of solar project, selling stakes in subsidiaries and other methods to achieve the purpose of reduce the burden, although reducing the size, but in his words is “not only bigger, but to do even more.” And it is precisely this “conservative” decision making for frantic expansion, saddled with debt before the LDK LDK may just right. Therefore is at a critical juncture for LDK LDK, led by Tong XING to snow LDK LDK followed a period of bankruptcy reorganization is the most appropriate choice.

Thus, as successor and bankruptcy in the direct promotion of the LDK, tongxingxue has always been in line with its plan to promote the benign transformation of LDK LDK. Tong XING Xue, can burden led LDK LDK were paved to start all over again? Debt restructuring is to the last straw that has arisen now, or the key moments in a life-saving cure? Goodluck!

Original title: LDK LDK: restructuring, change may come again?

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