China's LDK Solar Misses $23.8M Bond Payment

Wed, 04/17/2013 - 10:02am
The Associated Press

NEW YORK (AP) — LDK Solar Co. said Tuesday that it failed to make a $23.8 million bond payment this week because of a "temporary cash-flow shortage" but negotiated to delay some of the obligation.

Payment on the 4.75 percent convertible notes was due Monday. LDK said it agreed with two bondholders to delay $16.6 million in payments. The company said it was "ready and willing to discuss and reach a settlement for the remaining convertible notes."

In afternoon trading LDK shares fell 5 cents, or 4.5 percent, to $1.07. They have fallen 25 percent this year. The stock traded at more than $70 in late 2007.

LDK's announcement came a month after another Chinese solar equipment maker, Suntech Power Holdings Co., defaulted on $541 million in bond payments.

The solar-power industry has been hurt by a glut of production that has led to a sharp drop in prices for panels. And fewer subsidies in Europe has slowed growth in demand.

LDK has headquarters and main manufacturing centers in China's Jiangxi province.


Share This Story

You may login with either your assigned username or your e-mail address.
The password field is case sensitive.