Mayer Brown advised The Bank of New York Mellon (the Bank) on its multiple roles as trustee to the restructuring of the liabilities of LDK Solar (the Company). The transaction is the winner of Asia Legal Awards 2015 Finance Deal of the Year: Insolvency & Restructuring. Read here for more on the awards.
LDK Solar, a Chinese solar-cell maker and its subsidiaries proposed a scheme of arrangement to restructure more than $700 million in claims owed under the laws of several jurisdictions after a default in the payment of interest in 2013. Mayer Brown a dvised the Bank as a:
- trustee for the RMB1.2 billion US$-settled 10 percent Senior Notes due 2014 and the US$700 million 4.75 percent Convertible Senior Notes due 2013 issued by the Company;
- trustee for the new series of 5.535 percent Senior Convertible Notes due 2016 and 5.535 percent Senior Convertible Notes due 2018 issued by the Company to its creditors under the terms of the schemes of arrangement in exchange for the Company’s existing liabilities; and
- settlement agent for the new series of Senior Convertible Notes under the schemes of arrangement.
The Asian Lawyer said the "LDK Solar restructuring is believed to be the first judicially approved, multi-jurisdictional debt restructuring of its kind for a China-based entity, with parallel proceedings in Hong Kong, the Cayman Islands and the United States. It also demonstrated the use of a light-touch provisional liquidation in the Cayman Islands to facilitate a restructuring." It also said the restructuring "sets a precedent for the cross-border restructuring of Chinese entities with financing arrangements in the international capital markets."
The Mayer Brown team included partners John Marsden and Jason T. Elder.