Solar Panel Maker LDK Bankruptcy Approved; Creditors Take Huge Losses
(Beijing) — Creditors of bankrupt solar panel maker LDK Solar will lose up to 80 percent of their money, or as much as 20 billion yuan ($3 billion), under a reorganization plan that a court in Jiangxi province recently approved for the company.
The liquidation will mark the end of a years-long saga that saw LDK and many of its rivals post big losses after a major buildup of China's solar-panel sector, fueled by generous subsidies from Beijing and local governments. Such incentive programs are common for industries targeted for development by Beijing, and often lead to local and even global gluts and huge losses for sectors that make products as diverse as steel and electric vehicles.
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