LDK Solar says US bankruptcy court has confirmed reorganization plan for subsidiaries

MarketsAssociated Press

LDK Solar said Monday that a U.S. bankruptcy court has confirmed the reorganization plan for three of its subsidiaries.

Judge Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware confirmed the plan for LDK Solar Systems Inc., LDK Solar USA Inc. and LDK Solar Tech USA Inc. The subsidiaries had filed to reorganize under Chapter 11 bankruptcy protection in October.

Continue Reading Below

LDK Solar Inc. had struggled for years with tumbling prices for photovoltaic technology. It was delisted from the New York Stock Exchange in March.

The company's interim chairman, president and CEO, Xingxue Tong, said in a statement that the approval from the U.S. court was the final one needed for the company to execute certain documents with creditors so it could complete the international restructuring of its offshore liabilities.

The U.S. has long complained about a flood of solar panels and other products from China, which heavily subsidized the industry.

After Beijing signaled it would no longer prop up solar companies that got into financial trouble, many of those companies came under considerable strain. Last year the biggest subsidiary of Suntech Power, once a behemoth in China, was forced into bankruptcy protection.

Tong said Monday that with more than $700 million in offshore claims approved for restructuring, LDK Solar would now "focus our attention on rebuilding LDK Solar's position in the marketplace."