LDK “regeneration” trilogy

Polaris solar PV net news: winter Xinyu, chill. Born bred LDK LDK Solar hi-tech company limited (hereinafter “LDK LDK”), in front of deserted, while its overseas debt restructuring programme had been adopted at the end of November, but still hardly cover up the Valley.

Xinyu, not far from LDK LDK Solar market, revealed her into “Xinyu industrial base of electronic commerce”, part of the shops along the street into e-commerce Office premises, part of which remains vacant, rare PV figure. Two years ago, in March, the Xinyu city relevant departments to invest 200 million Yuan into China’s first photovoltaic market. Today, 3-year rent-free concession period will come, that once had high hopes of the PV market will be stranded on indefinitely.

Expensive for a time the world’s largest polysilicon manufacturers, LDK LDK, Xinyu, is not only one of the local leading enterprises, on a larger level, or even underdeveloped, showing a star company in Jiangxi province. And Jiangxi Xinyu authorities several times in the LDK LDK’s financial difficulties, provide rescue. Government’s “fallback” at the same time, questions poured in, there have been rumors. LDK LDK spokesman Peng Shaomin weekly correspondent of the times made it clear that, although local governments give a lot of help to the LDK LDK, and even set up a support group, but the Government will not offer, LDK LDK will not be nationalized.

Stricken LDK LDK, conducted a series of adjustments this year-in February, started overseas debt restructuring. Meanwhile, officials have conducted a large “transfusion”, digital background executives of State-owned assets into decision-making. Largest shake-up occurred in August, founder of LDK resigned from the post of Chairman, subsidiary of United States solar power company limited (SolarPowerInc, hereinafter referred to as SPI) Chairman of the Board.

LDK LDK’s multiple adjustments can be reborn, is still unknown.

Overseas debt restructuring

LDK LDK debt crisis alert, never to be lifted.

Most tense in the capital chain in 2012, the LDK LDK even once mired in “vendor blocked gate”, “corporate layoffs” storm. In 2013, the LDK LDK lost $ 1.339 billion yuan 4.341 billion yuan compared to the previous year, have narrowed significantly. First half of 2014, however, its operating profit was-685 million Yuan, the total profits-643 million Yuan, a net loss of 562 million Yuan. Compared with the same period in 2013, fell 239 million Yuan operating profit losses and 34.89%; total losses reduced by 195 million Yuan profit and 30.37%, net loss fell 34.67%.

However, the asset-liability ratio was at a record high. At the end of June 2014, LDK LDK-1.341 billion yuan on equity, asset-liability ratio as high as 105.6%.

To defuse the crisis, in February, LDK LDK in the Cayman Islands in their adopted “provisional liquidation” means to initiate overseas debt restructuring, restructuring process involving LDK LDK in the Cayman Islands, Hong Kong, China and the United States to three companies, restructure debt payments totaling more than $ 700 million.

Corporate overseas debt has two main parts: first, LDK LDK in Singapore high yield bonds issued 1.7 billion yuan (senior notes) and LDK LDK Solar polysilicon and issued a $ 240 million equity financing (preferred shares).

According to has arisen now reached with the creditor’s “debt restructuring support agreement” plan to resolve the debt is divided into two kinds, can be broadly divided into cash redemptions and debt-for-equity in two ways. Cash redemption refers to LDK LDK per 1 US dollar debt, $ 0.2, recycled bond refers to debt-equity swap, debt by LDK LDK 8.736% common shares at a price of us $ 1.586 per share payment (equity locked ban restriction), the remaining 91.264% of the debt issued by LDK LDK’s convertible bonds to pay it off.

In their access to the vast majority of creditors “restructuring support agreement”, the Cayman courts and the courts of Hong Kong, China on November 7 and November 17 this year, respectively by LDK LDK overseas restructuring plans.

The approval by the courts of the Cayman Islands, Hong Kong, China, on November 21, the United States Bankruptcy Court approved the LDK LDK plan of reorganization of three subsidiaries in the United States. The move meant that for nearly a year, LDK LDK overseas debt restructuring has been completed all legal proceedings abroad, into performing real operations phase of the agreement.

LDK spokesman Peng Shaomin said that “United States Bankruptcy Court approved a Cayman Court the LDK LDK overseas debt restructuring package approved and authorized the United States to implement the plan. Marking the LDK overseas debt restructuring for nearly a year has gone all legal proceedings abroad, into performing real operations phase of the agreement. The United States bankruptcy court reorganization plan, the LDK LDK with all creditors in accordance with the restructuring project through debt restructuring “.

Executive shake-up

Overseas debt restructuring at the same time, executives also LDK LDK “transfusion”.

On August 30, LDK resigned from the post of Chairman, tongxingxue provisional Chairman of the Board. Tong took over, sent a letter to all employees for the opening match of the journey of reform to achieve modernization dream Buck’s letters.

In letter in the, Tong height evaluation has LDK as founder by do of contribution, while said, company since last year second half of full recovery production yilai, wafer, and battery, and component and station four a links basic recovery to health level, overseas debt restructuring also made major progress, Silicon material project in completed cold hydrogen of transformation Hou also smooth complex produced, “all these are for game dimension revival firm has confidence, rammed has Foundation, brings has dawn”.

Peng’s departure, just top “transfusion” all Argle. Earlier this year, personnel changes have begun. In January, Ao Yunsong, Executive Vice President in charge of finance, Vice-President Xiong yan, in charge of the Silicon material Division. Above both of them have a strong State and Government backing.

Ao Yunsong from September 2012, as Henry, Director of new energy in Jiangxi, Vice Chairman and Vice General Manager, and in August 2010 to December 2013, Presidency of the Xinyu district Party Committee member and the high-tech zone management Committee Deputy Director. While the bear in September 2012, Xinyu city, has been appointed as Deputy Secretary of the leading party group and Vice, while solar, Xinyu, Deputy Director (Chair), as well as Henry new energy Chairman of the Board of supervisors.

Henry $ 0.86 per share in October 2012, the new energy price, buy Sunwell about 19.9% shares of Outstanding capital stock deals worth a total of about $ 23 million. Beijing hengji weiye investment new energy development corporation hengrui 60% shares, Xinyu city, the State-owned assets management limited liability company holds the remaining 40% shares. At that time, the industry generally will be considered local government support in disguise, LDK, more analysis, which is “PV nationalization” curtains open.

Henry shares after the LDK LDK new energy sources, Liu Zhibin, Chairman of the hengrui company identity to become Director of LDK LDK. In March 2013, Liu Zhibin, State-backed directors to resign. According to an official appointed as the new energy industry of Xinyu city workers Union disclosed to weekly correspondent of the times, Liu twice this year again, re-entering the LDK LDK Board, Tong Hing snow encountered significant issues that still need consultations with LAU.

Meanwhile, appointed as principal of Xinyu city workers told reporters, the Government will provide a range of help, but will not nationalize the LDK LDK.

Expanding downstream

As the LDK resigned as Chairman of LDK LDK, LDK LDK has bid farewell to the era of LDK. Peng served as Senior Adviser to the company and the subsidiary company only posts and Honorary Chairman.

A senior LDK LDK told reporters, LDK stepped down as Chairman, but as the founder, “transition of LDK SPI platform station, if the business bigger, for upstream has arisen now, and must be positive. ”

SPI is LDK LDK in January 2011, a company it acquired for $ 33 million. On August 20 this year, expressed to make the SPI LDK LDK LDK “a growth platform.”

Since then, SPI series of actions, also verified that Peng’s claim. On October 7, the SPI teamed up with constant into the Tibetan group, meanwhile, evergrande subscription price of us $ 30 million SPI2173.95 million shares of its common stock, SPI total equity 3.95%.

SPI in October 27 announced, its full funding subsidiary Suzhou beauty too power limited (Xia said “Suzhou beauty too”) has and in the can country electric new energy development investment Jiangsu limited (Xia said “in the can new energy”) reached purchased framework agreement, will acquisition in the can new energy is located in China of 6 a built PV project, and and in the can country electric PV green ecological cooperation development Jiangsu limited (“in the can country electric”) reached another a items framework purchased agreement, will acquisition in the can new energy of shares.

Suzhou too wish to buy PV projects under construction include the 40-megawatt project, branch left banner, chifeng city, in Inner Mongolia, Shangdu County 50 MW 60 MW project items and observing the right flag 30 MW project, 130-megawatt project, Zhongwei city of Ningxia and Sichuan yanyuan County, 50 MW. These projects late in 2014 to mid-2015 is expected to achieve incorporation.

On the day before the announcement, SPI has just announced and GD solar Ltd (“PV”) reached a number of agreements. Agreement including Suzhou too GD solar construction project has a right of first refusal. Suzhou too with GD solar will team up to develop a total of 1.5 GW of PV projects in China, 2015 – 2017 500 megawatts per year. Suzhou is provided for these new photovoltaic project development, financial services and holds stakes in these projects. In addition, the Suzhou subsidiary too GD solar will also be purchased 160-MW PV project at the expense of 1.575 billion yuan, payments will be made from the cash for the purchase and SPI stocks.

“SPI’s business is the development and construction of power stations, in the downstream of the photovoltaic industry and downstream industries develop well for the upper reaches of the LDK LDK, is definitely a positive. “A senior LDK told reporters, led by LDK SPI development, close to the LDK LDK.

Outlook remains grim

LDK LDK back rejuvenation dream, an important bargaining chip is “sleeping” two years Ma Hong, the Silicon material plant, its production throughout the year. Thanks to previous reconstruction fund of 440 million yuan of cold hydrogen.

LDK LDK Vice President Xiong yan told reporters, this year the company received local government and provided by several banks, led by State CDB loan of 2 billion yuan, including 1.56 billion yuan for liquidity, 440 million Yuan for Mahon polysilicon factory cooled hydrogen reforming special funds for the project.

“To conclude the project of cold hydrogen reforming plan funding is not enough, but we strive to develop their own team of management, technology, reducing costs, saving 180 million Yuan, the management fees alone would save 60 million Yuan. “Xiong yan said.

On July 28, Mahone polysilicon plant production launch. Mahon polysilicon project is the world’s single largest polysilicon project, stable running, will be supporting cold hydrogen production unit, and further reduce production costs.

Time weekly freelance reporter interviewed Mahon polysilicon factory was informed that, as at the end of November, Mahon polysilicon plant production of silicon materials have not yet all been achieved “cold hydrogenated” technology, LDK LDK who in charge of polysilicon Division Executive told reporters that through technological innovation, Mahon polysilicon plant costs have dramatically reduced at present, fell at around 25%. “There’s cold hydrogenated linkage adjustment, so if all the implements of cold hydrogen technology, production costs will be greatly reduced. ”

LDK LDK official told reporters, as China United States Silicon double reverse next year, Chinese imports of silicon materials will substantially reduce the number, for domestic polysilicon companies, will be good news.

However, the reality is unexpected, solar grade polysilicon import trends not only is not blocked, but constantly rising. Silicon industry branch of China Nonferrous metals industry association’s latest report shows that polysilicon September China imports totaled 9942 tons, increased 18.7% per cent, another record high.

High hopes LDK LDK Solar polysilicon project, what you can bring to the company’s recovery, remains to be seen. Between late November and early December, reporters during interviews in Xinyu, a local government official and senior LDK expressed a similar view: LDK LDK has passed the most difficult time, but the Outlook remains uncertain.

Double-sided LDK

“Despite a four-week shines with golden light, but has been eroded, black. “This stems from Ishikawa three gold rings directed by Eclipse actor lines in a movie, as described has been distorted by the PV industry might be more appropriate than that.

After years of struggling, character-the banner of PV industry in August 2014, resigned from the post of Chairman of LDK LDK LDK. Everyone thought this was deeply imprinted with “Peng” mark PV giant, will end up leaving “LDK era.”

In fact, at present, the LDK LDK LDK’s Honorary Chairman and the largest shareholder. In the view of senior members of LDK LDK, “pengdongyiran the heart of has arisen now. “However,” tunneling along with LDK LDK LDK “conspiracy theory is significantly more markets.

Peng’s side for their still Thanksgiving. “Peng Dong was decisive, as long as Danny, will be put into action. “One person close to the LDK to reporters, said,” he’s in charge of SPI is actually developing downstream industries, the LDK LDK is good. ”

Emptied after giving up?

On November 22, the Jiangxi province Jiangxi Business Conference on entrepreneurship and innovation in their hometowns, LDK 106 contestants such as Gan, was awarded the “best home business-Jiangxi business.”

Peng’s inclusion, and perhaps other Gan to be convinced. One set of doing business in Zhejiang (a pseudonym) told weekly newspaper correspondent of the times, many years ago, the LDK LDK LDK carrying located in Xinyu can indeed call it home-Jiangxi business model of entrepreneurship. “But now it is different, it is no longer Chairman of LDK LDK LDK, he went to the United States to be his station platforms, including previously doing business in Suzhou and were not related with their hometowns. Moreover, has arisen now and now is struggling. ”

Prior to the August 29, LDK LDK announced joint provisional liquidator, LDK LDK has started a petition to the Grand Court of the Cayman Islands committed to its debt restructuring program, and accept the LDK resigned as Chairman and Director of the company with immediate effect.

LDK LDK spokesman said Peng Shaomin, resigned as Chairman of LDK, is due to the LDK LDK overseas debt restructuring needs, accept the recommendation of the provisional liquidator, is better for the company’s development. However, a local official who asked to remain anonymous told die Zeit in an interview, less than satisfied with, “look, Xinyu LDK LDK bring what? Taxes and Government subsidies, now almost flat for the year, giving local people and had a huge impact on the environment, top is hollowed company, has now resigned. ”

In fact, LDK’s “heart” is prior to the “body”, early leaving LDK LDK.

In September 2013, the LDK investments in e-commerce site-Suzhou extraordinary beauty e-Commerce Limited (hereinafter “extraordinarily beautiful”) formally launched. Reportedly, the end of 2012, Peng introduced to electricity supplier has a comprehensive understanding and determining that it is producing industry. In March this year, e-commerce companies preparing for, was incorporated in mid-July, September 1, formally launched the extraordinary beauty. “Peng” style again.

However, extraordinary beauty was established less than six months, would come a wage news. A person close to the LDK confirmed this rumor to a reporter.

A new round of adventures?

However, the LDK men, LDK rather rough on the market, but with great charisma, conscientious and dedicated, called “workaholic”. A person close to the LDK, told reporters, LDK each trip, carrying a large backpack more than 30 kilos, all work equipment is carried in a working state at any time, “he works more than ordinary people every day, get up in the morning, often he told the Secretary. ”

LDK LDK chose this time to start dimension, steering-power and raw materials in the PV industry, seemed to be the beginning of an adventure.

On August 26, the SPI announced its wholly-owned subsidiary of Xinyu new reform energy limited (hereinafter “new dimensions”), liaocheng city, has been tentatively approved by the local government, will be built in Shandong province, a total of about 10 megawatts of photovoltaic power stations on August 28, SPI announced xinwei and central defender Albert Henderson photovoltaic power company of Zhongwei city of Ningxia EPC turnkey agreement reached 30-megawatt power project.

October 27, SPI announced, its full funding subsidiary Suzhou beauty too power limited has and in the can country electric new energy development investment Jiangsu limited reached purchased framework agreement, will acquisition in the can new energy is located in China of 6 a built PV project, and and in the can country electric PV green ecological cooperation development Jiangsu limited reached another a items framework purchased agreement, will acquisition in the can new energy of shares.

SPI LDK rate step by step, in the field of photovoltaic power plant enlarge soils, and LDK LDK first established the pattern is similar. After the LDK focus SPI, evergrande has completed a US $ 30 million in financing. But results showed that SPI the last two quarters, are losing money.

One industry analyst, PV power station construction need to precipitate large amounts of capital, LDK so open up PV power station construction on a large scale, this is after the LDK LDK, and an adventure.

Original title: has arisen now “regeneration” trilogy

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