LDK Solar Co. (LDKSY:US), the Chinese solar manufacturer that defaulted on a bond that matured in February, secured $24 million in funding commitments from shareholder Heng Rui Xin Energy (HK) Co. to reorganize its offshore business.
The Xinyu, China-based company and its joint provisional liquidators have also identified $5 million of additional funding to be committed by certain units of LDK Solar, it said today in a regulatory statement.
The commitments may be enough to meet exit financing requirements of the restructuring, subject to approval of a Cayman court, the company said. LDK Solar plans to extend the restructuring closing date to no later than the end of September and may apply for an automatic extension of another 1 1/2 months, the company said.
The company in March named liquidators to wind up its business after missing bond repayments. LDK Solar said it plans to halve its cash-out option for holders of senior and preferred claims to $0.1 for each dollar and to compromise with other offshore creditors with a combination of cash or equity and convertible securities.
The company expects to file its 2013 annual report on or before Oct. 31.
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