Ropes & Gray Summons Global Team for Novel Multi-District Restructuring
Ropes & Gray advised an ad hoc committee of holders of LDK Solar Co. Ltd.’s New York law-governed 10% senior notes, in the context of a wider restructuring of LDK's offshore liabilities. LDK is a leading vertically integrated manufacturer of photovoltaic products with manufacturing facilities in the PRC.
Ropes & Gray led negotiations with the company and its advisors on behalf of the Hong Kong-based ad hoc committee following a default in the payment of interest in August 2013. A global team of Ropes & Gray lawyers was actively involved in devising the strategy to restructure LDK Solar’s complex financing arrangements.
The restructuring sets a precedent for the cross-border restructuring of Chinese entities with financing arrangements in the international capital markets. The notes and other claims against LDK Solar’s subsidiaries, amounting to over US$700m, were restructured using parallel schemes of arrangement in the Cayman Islands and Hong Kong together with Chapter 11 and Chapter 15 proceedings in the U.S. to ensure international recognition of the restructuring in the jurisdictions where LDK’s creditors were located.
The Chapter 11 and Chapter 15 proceedings were approved by the U.S. Bankruptcy Court on Nov. 21, 2014, following earlier approval of the schemes of arrangement from the High Court of Hong Kong and the Grand Court of the Cayman Islands.
The Ropes & Gray team was led by partners Dan Anderson (Hong Kong), and Mark Bane (New York). They were assisted by associates Kat Berkeley (Hong Kong) and Daniel Andrews (London).
Dan Anderson commented on the restructuring:
"Our global team was seamlessly integrated from the start. As a result, we were able to quickly provide advice and guidance that considered all angles in a very complex multi-jurisdictional situation."
The LDK restructuring caps a busy year for Ropes & Gray's Asia restructuring practice, which was also involved in the Suzlon Energy restructuring that was completed in July.
The ad hoc committee was advised with respect to Cayman law by Harneys. Houlihan Lokey was the financial advisor to the Noteholders.