Friday, March 28, 2014


This morning:

NEW YORK, March 28, 2014 - The New York Stock Exchange ("NYSE") announced today that the staff of NYSE Regulation, Inc. ("NYSE Regulation") will continue to review the listing status of the American Depositary Shares (Each representing one ordinary share, nominal value $0.10 per share) (the "American Depositary Shares") of LDK Solar Co., Ltd. (the "Company") - ticker symbol LDK - on the NYSE in light of the Company's February 24, 2014 announcement that it made a filing on February 21, 2014 with the Grand Court of the Cayman Islands (the "Cayman Court") for the appointment of joint provisional liquidators in connection with its plans to resolve its offshore liquidity issues.

NYSE Regulation had previously initiated a trading halt in the Company's American Depositary Shares prior to the opening on February 24, 2014, in advance of the Company's initial news announcement that day. On March 28, 2014, the Company announced the signing of a Restructuring Support Agreement ("RSA") with holders of approximately 60% of its 10% Senior Notes due 2014 ("the Senior Notes") and a separate RSA with holders of approximately 79% of the convertible preferred shares (the "Preferred Obligations") issued by an affiliate of the Company and involving claims against the Company, with final execution subject to Cayman Court approval, currently expected to be on or around April 2, 2014. The existing ordinary shares underlying the listed American Depositary Shares will continue to exist post-restructuring, as contemplated in the aforementioned RSAs.

However, they will be subject to significant dilution over time as a result of issuances of equity and convertible securities.

NYSE Regulation has now completed its assessment of these recent public disclosures, in the context of NYSE Listed Company Manual ("LCM") Section 802.01D, and will begin the procedure to resume trading in the Company's American Depositary Shares. NYSE Regulation will carefully consider the price indications obtained in the opening process and will assess whether to move to halt or suspend trading in the Company's securities should: (1) the price indications or subsequent trading reflect a price that NYSE Regulation deems to be "abnormally low"; (2) NYSE Regulation receive authoritative advice that the security is without value; or (3) the Company falls below the quantitative continued listing standards listed in NYSE LCM Sections 802.01 B and C.

NYSE Regulation will continue to closely monitor events at the Company and the appropriateness of continued listing of the Company's securities.

NYSE Regulation notes that it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in light of all pertinent facts and circumstances whenever it deems such action appropriate. In addition, NYSE Regulation may, at any time, suspend a security if it believes that continued dealings in or listing of the security on the NYSE are not advisable."


MrGotham said...

The NYSE listing standards are proving fairly elastic, as we saw in Suntech. Apparently if your stock trades at a high enough volume, all is forgiven.

Here is what section 802.01D of the NYSE Listed Company Manual actually states:

“The Exchange…may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in the light of all pertinent facts whenever it deems such action appropriate, even though a security meets or fails to meet any enumerated criteria. Other factors which may lead to a company's delisting include:

• The failure of a company to make timely, adequate, and accurate disclosures of information to its shareholders and the investing public.
• Failure to observe good accounting practices in reporting of earnings and financial position…
• Unsatisfactory financial conditions and/or operating results.
• Inability to meet current debt obligations or to adequately finance operations”

Oh, and the NYSE also states that “encouraging transparency in markets, setting high standards of integrity and governance…are exchange touchstones.”

So apparently it's see no evil, hear no evil down at NYSE regulation, particularly if you are a Chinese solar company and you've been in default for 11 1/2 months.

Rest easy folks, the NYSE has your back.

Anonymous said...

What's amazing is that the entire fundamental purpose of the STP and LDK restructuring plans is to try to keep the NYSE listings so that bondholders have a ready market to dump their converted stock onto.